Question

Wyly Inc. produces and sells a single product?

Answer 1

Answer:

The break even point in monthly dollar sales is closest to: $566,100 (or 3,330 units at a price of $170)

Explanation:

Hi, first let´s introduce the break-even point equation:

$BEP(units)=\frac{Fixed Expenses}{Price-VariableCost} =[Units]$

$BEP(Dollars)=BEP(Units)*Price$

Therefore, let´s find the BEP in units first

$BEP(units)=\frac{356,643}{170-62.90} =3,330$

So, the break even point in units is 3,330, let´s find the BEP($)

$BEP(Dollars)=3,330*170=566,100$

The break-even in monthly dollar sales is $566,100

Best of luck.