Break-even sales dollars practice problems

Marketing Unit 8. Try each one, then open the worked solution. The Credit Sprint app generates unlimited new versions with fresh numbers.

Problem 1.

Fixed costs are $30,000 and every sales dollar contributes 25% after variable costs. What sales revenue (in dollars) is needed to break even?

Show solution

Break-even sales = fixed costs ÷ contribution margin ratio = 30000 ÷ 0.25 = 120000.

Problem 2.

Fixed costs are $10,000 and every sales dollar contributes 20% after variable costs. What sales revenue (in dollars) is needed to break even?

Show solution

Break-even sales = fixed costs ÷ contribution margin ratio = 10000 ÷ 0.2 = 50000.

Problem 3.

Fixed costs are $50,000 and every sales dollar contributes 40% after variable costs. What sales revenue (in dollars) is needed to break even?

Show solution

Break-even sales = fixed costs ÷ contribution margin ratio = 50000 ÷ 0.4 = 125000.

Problem 4.

Fixed costs are $40,000 and every sales dollar contributes 40% after variable costs. What sales revenue (in dollars) is needed to break even?

Show solution

Break-even sales = fixed costs ÷ contribution margin ratio = 40000 ÷ 0.4 = 100000.

Problem 5.

Fixed costs are $10,000 and every sales dollar contributes 40% after variable costs. What sales revenue (in dollars) is needed to break even?

Show solution

Break-even sales = fixed costs ÷ contribution margin ratio = 10000 ÷ 0.4 = 25000.

Problem 6.

Fixed costs are $10,000 and every sales dollar contributes 40% after variable costs. What sales revenue (in dollars) is needed to break even?

Show solution

Break-even sales = fixed costs ÷ contribution margin ratio = 10000 ÷ 0.4 = 25000.