If Variable Costs Are 60% of Sales and Fixed Costs

question 22

Short Answer

If variable costs are 60% of sales and fixed costs are $100 000,the break-even sales revenue is ____________________.

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Definitions:

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.

Cost Of Debt

The effective rate that a company pays on its total debt, acting as a measure of the risk and cost of borrowing capital.

Operating Income

Income generated from regular business operations, excluding non-operating activities like investment income.

Total Leverage

The combined effect of using both operating and financial leverage on a company's earnings per share.