Bialy Company had the following information: Total sales $120,000 Total variable cost 48,000 Operating income 12,000 What is the breakeven sales revenue

$100,000

Explanation:

The breakeven sales revenue is the annual fixed cost divided by the contribution margin ratio of the product, which is the amount of sales revenue that the Bialy company needs to achieve in order to make a zero profit.

operating income=sales revenue-variable cost-fixed cost

operating income=$12,000

sales revenue=$120,0000

variable cost=$48,000

fixed cost=unknown

$12,000=$120,000-$48,000-fixed cost

fixed cost=$120,000-$48,000-$12,000

fixed cost=$60,000

total contribution=sales revenue-variable cost

total contribution=$120,000-$48,000

total contribution=$72,000

contribution margin ratio=total contribution margin/sales revenue

contribution margin ratio=$72,000/$120,000

contribution margin ratio=60%

breakeven sales revenue=$60,000/60%

breakeven sales revenue=$100,000

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