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A company has a fixed costs of $1.3 m. Variable costs are 55% of sales up to a sales level of $1.5 m but at higher volumes of production and sales, the variable cost for incremental production units falls to 52% of sales.
What is the BEP in sales revenue?
in this question I did not understand that why u took extra contribution 1.3 – 0.675 = 0.625M and why after this 0.625/0.48 = 1.302M. Not understanding
Sir, I am totally unable to understand this question, my mind stuck. I saw the answer but not satisfied. please explain the answer of this question.
thank you
Beauty Co makes two products, nail polish and lipsticks.
Nail polish sales make up 30% of total sales and their variable costs are 45% as a percentage
of sales value.
Lipsticks sales are 70% of the total sales and their variable costs are 40% as a percentage of
sales value.
Total fixed costs are $400,000 for the company.
Required:
What is break-even level of sales revenues for the company?yes sir, these shops are seperate legat entities and they have no share capital,
Both of the shops are small businesses
Sir, the owner has Already 100% ownership of Both the shop
what he just did, he Took the “Cash in Hand” from Shop 1 , and added it into Shop 2.
So the Capital of Shop 2 Increased Right?
But we are using one Profit&loss and Balance Sheet for both of the Businesses,
Now my Question is this, what will be the Entry if “Cash in Hand” is Reducing of “Shop 1” and “Capital” is increasing of “Shop 2”?