Question

A company has a break even point in revenue at 800,000. Variable costs are 60% of the revenue. If the company lost 40,000 last year. How much wad the revenue?

Answer 1

Answer: A company has 440000 as revenue.

Explanation:

Total revenue a company earned = 800000

Variable costs = 60% of revenue

So , variable costs becomes

`(60)/(100)* 800000\\=480000`

Now, company lost = 40000

So, remaining revenue becomes

`480000-40000=440000`

So, a company has 440000 as revenue.