Lake sales had 2,000,000 in sales last month. The contribution margin was 40% and operating...
Question:
Lake sales had 2,000,000 in sales last month. The contribution margin was 40%, and operating profits were $165,000. What are Lakes' break-even sales in dollars?
Break-even Point:
The break-even point can be expressed in either units or the level of sales. The company will not incur loss or generate any income at this point. Instead, the revenues generated will be equivalent to the total costs and expenses incurred.
Answer and Explanation: 1
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View this answerThe break-even point is computed by dividing the fixed cost by the contribution margin. In case the company wanted to compute the break-even in units,...
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How to Calculate the Break-Even Point - Definition & Formula
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Chapter 5 / Lesson 28
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See how to calculate break-even point (in units and dollars). See the variables of the break-even point formula and examples. Understand the purpose of break-even analysis.
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