Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Problems - Page 101: 3-41(4)

Answer

8% of Monthly Revenue = $0.08 \times 32,888.80 = 2,631.10$

Work Step by Step

Breakeven Point (in units) = Total Fixed Costs $\div$ Contribution Margin per Unit Breakeven Point with Fixed Rent ≈ 1,644.44 units (calculated earlier) Monthly Revenue at Breakeven = Breakeven Point $\times$ Selling Price Monthly Revenue at Breakeven = $1,644.44 \times 20 = 32,888.80$ 8% of Monthly Revenue = 0.08 $\times$ Monthly Revenue at Breakeven
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