The operating budget of the Black Monster company is given below. Sales $425000 Fixed costs $122000 Variable costs $255000 Total costs $377000 Net Income $53000 Sales dollars at capacity: $531,250. Determine the break-even point in dollars if the fixed costs are reduced by $12,100 while variables costs are changed to 68% of sales. O a. $343,437.50 O b. $344,437.50 O c. $343,437.00
The operating budget of the Black Monster company is given below. Sales $425000 Fixed costs $122000 Variable costs $255000 Total costs $377000 Net Income $53000 Sales dollars at capacity: $531,250. Determine the break-even point in dollars if the fixed costs are reduced by $12,100 while variables costs are changed to 68% of sales. O a. $343,437.50 O b. $344,437.50 O c. $343,437.00
Chapter1: Financial Statements And Business Decisions
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![The operating budget of the Black Monster company is given below.
Sales $425000
Fixed costs $122000
Variable costs $255000
Total costs $377000
Net Income $53000
Sales dollars at capacity: $531,250.
Determine the break-even point in dollars if the fixed costs are reduced by $12,100
while variables costs are changed to 68% of sales.
O a. $343,437.50
O b. $344,437.50
c. $343,437.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdf2784c6-2307-4678-866a-73ae973095a8%2F0fd47a8f-35f2-4bce-b7bc-4f829b8baad2%2Fgpxkcqp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The operating budget of the Black Monster company is given below.
Sales $425000
Fixed costs $122000
Variable costs $255000
Total costs $377000
Net Income $53000
Sales dollars at capacity: $531,250.
Determine the break-even point in dollars if the fixed costs are reduced by $12,100
while variables costs are changed to 68% of sales.
O a. $343,437.50
O b. $344,437.50
c. $343,437.00
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