Break even sales

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November 17, 2021 at 1:00 pm #640872
CYNTHIA
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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
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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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