Question

Data concerning Sinisi Corporation's single product appear below: Selling price per unit $ 200.00 Variable expense per unit $ 58.00 Fixed expense per month $ 407,540 The break-even in monthly dollar sales is closest to

Answer 1

Answer:

Break-even point (dollars)= $574,000

Explanation:

Giving the following information:

Selling price per unit $ 200.00

Variable expense per unit $ 58.00

Fixed expense per month $ 407,540

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 407,540 / [(200 - 58)/200]

Break-even point (dollars)= $574,000