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Breakeven Revenue

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Breakeven Revenue

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 15, 2018 at 5:50 pm #478587
    Avatarradovan
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    Dear Sir,

    Fred sells 2 products with selling prices and contribution as follows:

    Product X
    Selling Price: $40
    Contribution: $10
    Budgeted sales volume: 150,000

    Product Y
    Selling Price: $20
    Contribution: $4
    Budgeted sales volume: 100,000

    Fred’s fixed costs are $1,400,000 per year.
    What is Fred’s current breakeven revenue to the nearest $?

    A. $100,000
    B. $5,894,737
    C. $5,600,000
    D. $200,000

    Correct answer is B.

    Please could you let me know how to get to the correct answer as I’ve been struggling to solve this out. : (

    Thank you very much. Radovan

    October 15, 2018 at 6:56 pm #478625
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    You have also posted this in the general PM forum, and I have answered you there 🙂

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Breakeven Revenue’ is closed to new replies.

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