Wongstah Software Corp. had a net income of $65,450, total revenue of $470,000, and total variable costs of $340,265.
a. Was were the variable costs as a percent of sales?
%
Round to two decimal places
b. What was its total revenue at break-even?
Round to the nearest cent
Use the rounded rate from part a

Let's work through the problem step by step.

### Part (a): Calculate the variable costs as a percentage of sales.

We are given:
- Total revenue (sales) = $470,000
- Total variable costs = $340,265

The formula to calculate the variable costs as a percentage of sales is:

\[
\text{Variable Costs as a Percent of Sales} = \left(\frac{\text{Total Variable Costs}}{\text{Total Revenue}}\right) \times 100
\]

Plugging in the values:

\[
\text{Variable Costs as a Percent of Sales} = \left(\frac{340,265}{470,000}\right) \times 100
\]

Let's calculate that.

### Part (b): Calculate the total revenue at break-even.

The break-even revenue can be calculated using the following formula:

\[
\text{Break-even Revenue} = \frac{\text{Total Fixed Costs}}{1 - \left(\frac{\text{Variable Costs}}{\text{Revenue}}\right)}
\]

First, we need to calculate the fixed costs. Fixed costs can be found using the formula:

\[
\text{Fixed Costs} = \text{Total Revenue} - \text{Total Variable Costs} - \text{Net Income}
\]

We'll calculate these values and then use them to find the break-even revenue.

Let me calculate both answers for you.### Part (a)
The variable costs as a percentage of sales are approximately **72.40%**.

### Part (b)
The total revenue at break-even is approximately **$232,889.74**.

If you have any further questions or need additional details, feel free to ask.

Here are some related questions you might find helpful:
1. How do you calculate the contribution margin?
2. What is the formula for break-even in units?
3. How do fixed costs impact the break-even point?
4. What role does net income play in financial planning?
5. How can variable costs be reduced in a business?
6. What are the advantages of knowing the break-even point?
7. How does a change in sales price affect the break-even point?
8. How do you calculate the margin of safety?

**Tip:** Understanding the relationship between fixed costs, variable costs, and revenue is key to managing profitability.

Learn how to calculate variable costs as a percentage of sales and determine break-even revenue for Wongstah Software Corp. based on given financial data. Understand the financial implications and strategies involved. Suitable for financial analysts and business professionals.

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