COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Baljeevans Burgers has sales of 250 units, a sales revenue of £26 500, total variable costs of £12 340 and total fixed costs of £4 600 (all annual figures).Calculate the Profit or Loss
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£9 560
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£95 600
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£662 5000
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£660 8060
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Explanation:
Detailed explanation-1: -Break-Even Units = Total Fixed Costs / (Price per Unit-Variable Cost per Unit)
Detailed explanation-2: -Selling Costs to Sales Ratio Calculation By dividing the costs of selling to the total value of sales – and then multiplying the result by 100, you will get the ratio you were looking for. So, the formula should look like this: (Cost of selling / Total value of sales) x 100.
Detailed explanation-3: -The break-even point is the point at which total cost and total revenue are equal, meaning there is no loss or gain for your small business. In other words, you’ve reached the level of production at which the costs of production equals the revenues for a product.
There is 1 question to complete.