Breakeven Sales Revenue

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August 22, 2017 at 2:54 am #402849
Yong
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Dear Tutor

Please help, I do not understand the following question.

Q. Budgeted Sales revenue for the forthcoming period of $500,000 with an associated contribution of $275,000. Fixed production costs are $137,500 and fixed selling cost are $27,500.

The answer is $300,000.

Thank you.
August 22, 2017 at 9:39 am #402913
John Moffat
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Breakeven analysis was removed from the F2 syllabus many years ago. It is now only asked in Paper F5.
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