Question

Your answer is incorrect. Try again. Blossom Corp. had total variable costs of $219,600, total fixed costs of $126,750, and total revenues of $360,000. Compute the required sales in dollars to break even.

Answer 1

Answer:

$325,000

Explanation:

Given that,

Total variable costs = $219,600

Total fixed costs = $126,750

Total revenues = $360,000

Required sales in dollars to break even:

= [Total fixed cost ÷ (Total revenues - Total variable costs)] × Total revenues

= [$126,750 ÷ ($360,000 - $219,600)] × $360,000

= ($126,750 ÷ $140,400) × $360,000

= 0.9028 × $360,000

= $325,000