Xavier Medical Supply is a retailer of home medical equipment. Last year, Xavier's sales revenues totaled $6,200,000. Total expenses were $2,500,000. Of this amount, approximately $1,612,000 were variable, while the remainder was fixed. Since Xavier offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units. What is the company's break-even point in sales dollars?

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 18E
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Xavier Medical Supply is a retailer of home medical
equipment. Last year, Xavier's sales revenues
totaled $6,200,000. Total expenses were $2,500,000.
Of this amount, approximately $1,612,000 were
variable, while the remainder was fixed. Since
Xavier offers thousands of different products, its
managers prefer to calculate the breakeven point in
terms of sales dollars rather than units.
What is the company's break-even point in sales
dollars?
Transcribed Image Text:Xavier Medical Supply is a retailer of home medical equipment. Last year, Xavier's sales revenues totaled $6,200,000. Total expenses were $2,500,000. Of this amount, approximately $1,612,000 were variable, while the remainder was fixed. Since Xavier offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units. What is the company's break-even point in sales dollars?
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