Answer:
Break-even point (dollars)= $1,000,000
Explanation:
Giving the following information:
Total Units for information given 5,000
Fixed Cost per Unit $100
Selling Price per Unit $500
Variable Costs per Unit $125
Target Operating Income $250,000
Break-even point (dollars)= (fixed costs+ profit)/ contribution margin ratio
Fixed costs= 5,000*100= 500,000
Break-even point (dollars)= (500,000 + 250,000)/ [(500 - 135)/500]= $1,000,000
