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.

Step-by-step explanation:

Total revenue a company earned = 800000

Variable costs = 60% of revenue

So , variable costs becomes

$\frac{60}{100}\times 800000\\=480000$

Now, company lost = 40000

So, remaining revenue becomes

$480000-40000=440000$

So, a company has 440000 as revenue.