Based on the following data,calculate the breakeven point in dollars: Sales = $400,000
Gross Profit = $100,000
Transportation = $8,000
Cost of Goods Sold = $280,000
Expenses = $10,000
Salary = $40,000
A) $96,667
B) $133,333
C) $166,000
D) $232,000
E) Cannot be calculated with the information provided

Question

Quizplus · Accepted Answer

Gross profit percentage = Gross profit/sales = $100,000/$400,000 = 25%
BEP = Fixed costs/gross profit % = $58,000/25% = $232,000

Based on the Following Data,calculate the Breakeven Point in Dollars