Answered: Lancaster Enterprises' break-even point…

Lancaster Enterprises' break-even point in sales is $2,400,000, and its variable expenses are 60% of sales. If the company earned a profit of $120,000 last year, what must have been the total sales?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7BE: Margin of safety Jorgensen Company has sales of 380,000,000, and the break-even point in sales...

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Question

What must have been the total sales on these general accounting question?

Lancaster Enterprises' break-even point in sales is
$2,400,000, and its variable expenses are 60% of
sales. If the company earned a profit of $120,000 last
year, what must have been the total sales?

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