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Variable cost:

 All COGS = $19,823,000


 50% Selling expenses = $2,536,500
 50% interest & factoring charges = $263,500
TOTAL VARIABLE COST = $22,623,000

Fixed cost:

 50% Selling expenses = $2,536,500


 50% interest & factoring charges = $263,500
 All SG&A expense = $1,794,000
TOTAL FIXED COSR = $4,594,000
Prior to this transaction (in $000s)
Sales $28,414
Fixed costs 4,594
Variable costs 22,623
Contribution margin 20.38%
Break even point $22,540.83

VARIABLE COSTS 22,623,000 5791


CONTRIBUTION MARGIN =1− = 1− =
SALES 28,414,000 28414

¿ COSTS 5791
BREAKEVEN SALES POINT = =4,594,000÷ =$ 22,540,824.73
CONTRIBUTION MARGIN 28414

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