Question

Ace Corporation's variable costs are equal to 43% of sales revenue. Their fixed costs per month are $ 600000 , calculate total revenue at the break event point

0 $942.000
O $1052.632
O $1.395,349
O $858 000
O $1,355,400

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Answer 1

Given :   Ace Corporation's variable costs are equal to 43% of sales revenue. Their fixed costs per month are $ 600000 ,

To find : calculate total revenue at the break event point

Solution:

Let say Sale Revenue  = R

Corporation's variable costs are equal to 43% of sales revenue

=> Variable cost  =  (43/100)R  = 0.43R

Fixed Cost = $ 600000

Assuming break even point comes with in month

At break even point

Sale Revenue  = Variable cost   + Fixed cost

=> R = 0.43R + 600000

=> 0.57R = 600000

=> R = 600000  / 0.57

=> R = 10,52,631.6  = 10,52,632  $

total revenue at the break event point = 10,52,632  $

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