Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Problems - Page 104: 3-48(1)

Answer

Breakeven Revenues = $1,728,000 \div 0.4 = $4,320,000

Work Step by Step

Breakeven Revenues = Fixed Costs$ \div $ Contribution Margin Ratio Contribution Margin Ratio = (Revenues - Variable Costs) $\div $Revenues Contribution Margin Ratio = (4,000,000 - 2,400,000)$ \div $4,000,000 = 0.4
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