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(2)

Answer

Breakeven Revenues = $1,728,000 \div 0.48 = 3,600,000$

Work Step by Step

Breakeven Revenues with variable costs at 52% of revenues: Breakeven Revenues = Fixed Costs$ \div$ Contribution Margin Ratio Contribution Margin Ratio (New) = 1 - Variable Costs as % of Revenues Contribution Margin Ratio (New) = 1 - 0.52 = 0.48
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