# Ssume the following information: Variable cost ratio 80% Total fixed costs $60,000 What is the volume

3 answers

###### Question:

ssume the following information: Variable cost ratio 80% Total fixed costs $60,000 What is the volume of sales dollars required to break even

## Answers

Break-even point (dollars)= $300,000

Explanation:

Giving the following information:

Variable cost ratio 80%

Total fixed costs $60,000

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

contribution margin ratio= 1 - 0.8= 0.2

Break-even point (dollars)= 60,000 / 0.2

Break-even point (dollars)= $300,000

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is this good enough?

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