Question

Foster Company makes and sells power tools. The budgeted sales are $420,000, the budgeted variable costs are $147,000, and the budgeted fixed costs are $227,500. What is the break-even point in sales dollars

Answer 1

Answer:

0.65

Explanation:

Breakeven sales = 227,500 / 0.65 = $350,000

147,000 / 420,000 = 0.35

1 - 0.35 = 0.65