# Bep liquidating

Rated 3.93/5 based on 550 customer reviews

The contribution margin is sales revenue minus all variable costs.

It may be calculated using dollars or on a per unit basis.

The break‐even point represents the level of sales where net income equals zero.

In other words, the point where sales revenue equals total variable costs plus total fixed costs, and contribution margin equals fixed costs.

To calculate the required sales level, the targeted income is added to fixed costs, and the total is divided by the contribution margin ratio to determine required sales dollars, or the total is divided by contribution margin per unit to determine the required sales level in units.

Using the data from the previous example, what level of sales would be required if the company wanted ,000 of income?

Said another way, it is the amount of sales dollars available to cover (or contribute to) fixed costs.The ,000 of income required is called the targeted income.The required sales level is 0,000 and the required number of units is 300,000.The last calculation using the mathematical equation is the same as the break‐even sales formula using the fixed costs and the contribution margin ratio previously discussed in this chapter. The break‐even point in units of 250,000 is calculated by dividing fixed costs of 0,000 by contribution margin per unit of

Said another way, it is the amount of sales dollars available to cover (or contribute to) fixed costs.

The \$60,000 of income required is called the targeted income.

The required sales level is \$900,000 and the required number of units is 300,000.

The last calculation using the mathematical equation is the same as the break‐even sales formula using the fixed costs and the contribution margin ratio previously discussed in this chapter. The break‐even point in units of 250,000 is calculated by dividing fixed costs of \$300,000 by contribution margin per unit of \$1.20.

Again it should be noted that the last portion of the calculation using the mathematical equation is the same as the first calculation of break‐even units that used the contribution margin per unit.

||

Said another way, it is the amount of sales dollars available to cover (or contribute to) fixed costs.The \$60,000 of income required is called the targeted income.The required sales level is \$900,000 and the required number of units is 300,000.The last calculation using the mathematical equation is the same as the break‐even sales formula using the fixed costs and the contribution margin ratio previously discussed in this chapter. The break‐even point in units of 250,000 is calculated by dividing fixed costs of \$300,000 by contribution margin per unit of \$1.20.Again it should be noted that the last portion of the calculation using the mathematical equation is the same as the first calculation of break‐even units that used the contribution margin per unit.

.20.Again it should be noted that the last portion of the calculation using the mathematical equation is the same as the first calculation of break‐even units that used the contribution margin per unit.