With the following information, calculate the break-even point in sales dollars for a retail store: Revenue $ 100,000 $ 200,000 $ 600,000 Product line A Product line B Product line C • Cost of sales for the three product lines is 50%, 45%, and 55% of revenue, respectively. Fixed costs are estimated at $350,000.

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
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EXERCISE 5: CALCULATING THE BREAK-EVEN POINT
With the following information, calculate the break-even
point in sales dollars for a retail store:
Revenue
$ 100,000
$ 200,000
$ 600,000
Product line A
Product line B
Product line C
Cost of sales for the three product lines is 50%, 45%,
and 55% of revenue, respectively.
Fixed costs are estimated at $350,000.
Transcribed Image Text:EXERCISE 5: CALCULATING THE BREAK-EVEN POINT With the following information, calculate the break-even point in sales dollars for a retail store: Revenue $ 100,000 $ 200,000 $ 600,000 Product line A Product line B Product line C Cost of sales for the three product lines is 50%, 45%, and 55% of revenue, respectively. Fixed costs are estimated at $350,000.
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