Revenues 800,000 Variable Costs 160,000 Fixed Costs 40,000. What's Break Even Point in Revenue. Please Answer!

Question

The Following information pertains to Sylvia And Company:

Revenues 800,000 Variable Costs 160,000 Fixed Costs 40,000.

What is Sylvi'as Break Even Point in Revenues.

Please Answer!

Thank You

Answer 1

$50,000 BE in Revenue

Rev $800,000

Var    160,000

CM    640,000 (Contr Margin)

cm% = 80%

FC / CM% = BE Rev

$40,000 / 80%  = $50,000 BE Revenue