# Calculating break-even sales in dollars

Mckee corporation has annual fixed costs of $12 million. Its variable costs ratio is 0.60.

a) determine the company's break even dollar sales volume.

b) determine the dollar sales volume required to earn target profit of $ 3 million.

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#### Solution Preview

Solution:

a)

Fixed costs = $12 million

Variable cost ratio = 0.6

Break even Dollar ...

#### Solution Summary

Solution describes the steps for calculating break even sales and sales required to meet a target profit.

$2.19