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Homework answers / question archive / Kent Coffee Shoppe total sales revenue is $850,000, its variable expenses total $250,000, and its fixed expenses total $375,000

Kent Coffee Shoppe total sales revenue is $850,000, its variable expenses total $250,000, and its fixed expenses total $375,000

Accounting

Kent Coffee Shoppe total sales revenue is $850,000, its variable expenses total $250,000, and its fixed expenses total $375,000. Compute the overall contribution margin ratio and use the contribution margin ratio in the shortcut formula to predict the breakeven point in dollars.

 

Sales revenue

$850,000

Less: Variable expenses

$250,000

Contribution margin

 

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