Breakeven Formula

Practice Questions

CPA Business Environment and Concepts (BEC) › Breakeven Formula

Questions
6
1

Breakeven analysis assumes that over the relevant range:

2

ABC company's breakeven point was $780,000. Variable expenses averaged 60% of sales, and the margin of safety was $130,000. What was ABC's contribution margin?

3

A company has total sales of $80,000, total variable costs of $20,000, and total fixed costs of $30,000. What is the breakeven level in sales dollars?

4

A product has sales of $200,000, a contribution margin of 20%, and a margin of safety of $80,000. What is the product's fixed cost?

5

What is the formula for breakeven point in units?

6

How does the margin of safety relate to breakeven in units or sales? It is:

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