The operating budget of the Black Monster company is given below. Sales $425000 Fixed costs $122000 Variable costs $255000 Total costs $377000 Net Income $53000 Sales dollars at capacity: $531,250. Determine the break-even point in dollars if the fixed costs are reduced by $12,100 while variables costs are changed to 68% of sales. O a. $343,437.50 O b. $344,437.50 O c. $343,437.00

The operating budget of the Black Monster company is given below. Sales $425000 Fixed costs $122000 Variable costs $255000 Total costs $377000 Net Income $53000 Sales dollars at capacity: $531,250. Determine the break-even point in dollars if the fixed costs are reduced by $12,100 while variables costs are changed to 68% of sales. O a. $343,437.50 O b. $344,437.50 O c. $343,437.00

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 9E: Contribution margin ratio Young Company budgets sales of 112,900,000, fixed costs of 25,000,000, and...

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