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Break even sales

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Break even sales

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
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  • Author
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  • November 17, 2021 at 1:00 pm #640872
    CYNTHIA
    Member
    • Topics: 10
    • Replies: 20
    • ☆

    A company has budgeted sales revenue of $500,000 for January 20×5 with an associated contribution of $275,000. Fixed production cost are $137,500 and fixed selling costs amount to $27,500. What is d break even sales revenue?

    A $165000
    B $250000
    C $300000
    D $366667

    I added the fixed selling cost to the fixed production cost so overall my answer was $300000

    Please do I need to exclude the fixed selling cost

    November 17, 2021 at 3:16 pm #640905
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54761
    • ☆☆☆☆☆

    No, you are correct to include the fixed selling cost.

    (But why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – they have answers and workings 🙂 )

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