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Summit Corporation has a break-even point in sales of $850,000, and its variable expenses are 60% of sales. If the company lost $50,000 last year, what must have been its sales revenue? A. $750,000 B. $725,000 C. $700,000 D. $680,000

Summit Corporation has a break-even point in sales of $850,000, and its variable expenses are 60% of sales. If the company lost $50,000 last year, what must have been its sales revenue? A. $750,000 B. $725,000 C. $700,000 D. $680,000

Managerial Accounting
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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what must have been its sales revenue?

Summit Corporation has a break-even point in sales of $850,000, and its variable expenses are 60% of sales. If the company lost $50,000 last year, what must have been its sales revenue? A. $750,000 B. $725,000 C. $700,000 D. $680,000
Transcribed Image Text:Summit Corporation has a break-even point in sales of $850,000, and its variable expenses are 60% of sales. If the company lost $50,000 last year, what must have been its sales revenue? A. $750,000 B. $725,000 C. $700,000 D. $680,000
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