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Young Medical Supply is a retailer of home medical equipment. Last year, Young's sales revenues totaled $6,200,000. Total expenses were $2,500,000. Of this amount, approximately $1,612,000 were variable, while the rer offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units. Read the requirements Begin by identifying the formula to compute the operating income. Sales revenue Variable expenses Fixed expenses Operating income The operating income is $ 3,700,000 Requirement 2. What is Young's contribution margin ratio? Begin by identifying the formula to compute the contribution margin ratio. Contribution margin Sales revenue Contribution margin ratio (Enter the ratio as a whole percent.) The contribution margin ratio is 74 %

Young Medical Supply is a retailer of home medical equipment. Last year, Young's sales revenues totaled $6,200,000. Total expenses were $2,500,000. Of this amount, approximately $1,612,000 were variable, while the rer offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units. Read the requirements Begin by identifying the formula to compute the operating income. Sales revenue Variable expenses Fixed expenses Operating income The operating income is $ 3,700,000 Requirement 2. What is Young's contribution margin ratio? Begin by identifying the formula to compute the contribution margin ratio. Contribution margin Sales revenue Contribution margin ratio (Enter the ratio as a whole percent.) The contribution margin ratio is 74 %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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i only need the breakeven point in req.3 please.

 

Young Medical Supply is a retailer of home medical equipment. Last year, Young'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 were fixed. Since Young's offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units. Read the requirements. Begin by identifying the formula to compute the operating income. Sales revenue Variable expenses Fixed expenses Operating income The operating income is $ 3,700,000 Requirement 2. What is Young's contribution margin ratio? Begin by identifying the formula to compute the contribution margin ratio. Contribution margin Sales revenue Contribution margin ratio (Enter the ratio as a whole percent.) The contribution margin ratio is 74 %. Requirement 3. What is the company's breakeven point in sales dollars? (Hint: The contribution margin ratio calculated in Requirement 2 is already weighted by the company's actual sales mix.) Begin by identifying the formula to compute the breakeven point in sales dollars. Operating income Fixed expenses ) = Contribution margin ratio Breakeven sales in dollars (Round your answer up to the nearest whole dollar.) The breakeven point in sales dollars is
Transcribed Image Text:Young Medical Supply is a retailer of home medical equipment. Last year, Young'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 were fixed. Since Young's offers thousands of different products, its managers prefer to calculate the breakeven point in terms of sales dollars rather than units. Read the requirements. Begin by identifying the formula to compute the operating income. Sales revenue Variable expenses Fixed expenses Operating income The operating income is $ 3,700,000 Requirement 2. What is Young's contribution margin ratio? Begin by identifying the formula to compute the contribution margin ratio. Contribution margin Sales revenue Contribution margin ratio (Enter the ratio as a whole percent.) The contribution margin ratio is 74 %. Requirement 3. What is the company's breakeven point in sales dollars? (Hint: The contribution margin ratio calculated in Requirement 2 is already weighted by the company's actual sales mix.) Begin by identifying the formula to compute the breakeven point in sales dollars. Operating income Fixed expenses ) = Contribution margin ratio Breakeven sales in dollars (Round your answer up to the nearest whole dollar.) The breakeven point in sales dollars is
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