CPA Business Environment and Concepts (BEC) › Breakeven Formula
Breakeven analysis assumes that over the relevant range:
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?
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?
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?
What is the formula for breakeven point in units?
How does the margin of safety relate to breakeven in units or sales? It is: