Question

Last month peggy company had a $22,080 profit on sales of $286,900. fixed costs are $92,680 a month. what sales revenue is needed for peggy to break even? (

Answer 1

Given:
For last month,
Profit = $22,080,
Sales = $286,900
Also,
Fixed costs = $92,680 per month
Therefore,
Revenue - (286,900 + 92680) =  22080
Revenue =  $401,660

To break even, profit = 0, so that
Sales Revenue = 286,900 + 92,680 = $379,580

Answer: $379,580