Problem: Kent Company prepared the following table detailing its operating percentages for last year:
Sales.................................... 100%
Cost of sales:
Variable............................ 50%
Fixed................................. 10% 60%
Gross profit.......................... 40%
Other operating expenses:
Variable............................ 20%
Fixed................................. 15% 35%
Net operating income............ 5%
Kent's sales totaled $2,000,000 last year. At what sales level would the company break even?
- $1,900,000
- $1,666,667
- $1,250,000
- $833,333