ACCT.PRINCIPLES-WILEYPLUS NEXTGEN
ACCT.PRINCIPLES-WILEYPLUS NEXTGEN
14th Edition
ISBN: 9781119709954
Author: Weygandt
Publisher: WILEY
Question
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Chapter 22, Problem 9BE
To determine

Break-Even Point: It is the point of sales at which entity neither earns profit nor suffers a loss. It can also be said that the point of sales at which sales value of the entity recovers the entire cost of fixed and variable nature.

Contribution Margin Ratio: The ratio which shows the relationship between contribution and sales is called as contribution margin ratio. It is computed as the difference between selling price and variable costs and expressed as a percentage of sales.

To determine: The required sales in dollars to break even.

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