variable cost ratio=65% fixed costs=$91,000. Is BEP in sales $59,150?? I just need to know if I'm right.?

Answer 1

At break even point, Sales = Variable costs + Fixed costs, so sales cannot be $59,150. If var. costs are 65% of sales, let sales = x.
x = 0.65x + 91,000
0.35x = 91,000
x = 260,000
At break-even, sales = $260,000, var. costs = 65% of $260,000 or $169,000. Fixed costs = $91,000