# Determine the breakeven point in sales dollars and the required sales in dollars to earn a before tax profit of \$8,000,000.

Assignment Gb519 Week 3 | Business & Finance homework help

This is how the breakeven point for sales dollars in the initial situation is calculated:
Total Fixed Costs/(1 Variable Cost Ratio). = Breakeven Point In Sales Dollars
\$8,000,000 (Fixed Costs)/(1 – 0.68 Variable Cost Ratio) = \$24,411,765.29 Sales Dollars

The new breakeven point will be calculated if the variable costs rise by 12 percent
Total Fixed Costs/(1 New Variable Cost Ratio). = New Breakeven Point In Sales Dollars
\$8,000,000 (Fixed Costs)/(1 – 0.76 Variable Cost Ratio) = \$26,315789.47 Sales Dollars

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