Calculating break-even sales in dollars
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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 Summary
Solution describes the steps for calculating break even sales and sales required to meet a target profit.
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Solution:
a)
Fixed costs = $12 million
Variable cost ratio = 0.6
Break even Dollar ...
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- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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