Purchase Solution

ABC bread: Calculate the break-even point in sales dollars

Not what you're looking for?

Ask Custom Question

ABC Bread sells a box of bagels for with a contribution margin of 62.5%. Its fixed costs are $150,000 per year. How much sales dollars does ABC Bread need to break-even per year if bagels are its only product?

Purchase this Solution
Solution Summary

The solution explains the concept and shows the calculations to arrive at the amount of sales in dollars for break even.

Solution Preview

$150,000 / .625 = $240,000

The proof of this calculation is:

If $240,000 of bagels are sold and the ...

Purchase this Solution
Free BrainMass Quizzes
IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Motivation

This tests some key elements of major motivation theories.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

View More Free Quizzes
Related BrainMass Solutions

  • Jaime overhead allocation

    How much sales dollars does ABC Bread need to break-even per year if bagels are its only product? 7. Jaime Inc. manufactures 2 products, sweaters and jackets.

  • Variable costing/Absorption costing/Breakeven

    Reconcile the differences in income that you calculated in #3 and #4 . 6. Calculate the breakeven point in units. 7. Calculate the breakeven point in sales dollars. 8. Calculate the safety margin. 9.

  • Cost-Volume-Profit Analysis Cost Accounting

    Suppose that Sasha's fixed costs increase to $2500 per month and she decides to increase the price to $75/job. What is the new break-even point in number of jobs per month?

  • Variable and absorption cost

    Break even in units Units 7. Break even in sales $ 8. Calculate the safety margin and explain what the margin of safety means for this ABC Inc.

  • Accounting - Break Even

    Calculate the break even point expressed in terms of total sales dollars and sales volume Breakeven point (units) = Total fixed cost CMU = 27,000/(15 - 9) = 4,500 units Breakeven point in sales dollars = 4,500 units x $15 per unit

  • Calculation of the break even point for Mower Manufacturing

    20000 units The break even point in Dollars =BEP in units * Sales price per unit=$$500,000.00 There is no difference in the break even under both the methods.

  • Break Even Point Analysis in Costs

    111312 Break Even Point Analysis in Costs 1. ABC Company sell for $20 per unit, and the variable cost to produce them is $15. Gateway estimates that the fixed costs are $80,000. a. Compute the break-even point in units. b.

  • How to calculate Beak-Even in Units and Dollars

    Hello Student, In order to calculate the firm's break-even point in units, the formula that you would use is: Break-Even (Units) = Total Fixed Costs / Contribution Margin, Where Contribution Margin is given by: Contribution Margin = Selling

  • Calculating CM, break even sales and operating profits

    Calculate the break even point in unit sales and dollars Break even Sales in units=Fixed Costs/Contribution Margin Fixed Costs=$20,000 Contribution Margin=$12.00 Beak even sales in units=1,667 Break even sales in dollars

View More Related Solutions