Answer:
Break-even point (dollars)= $234,000
Explanation:
Giving the following information:
Sales (4,000 units) $ 240,000
Variable expenses 156,000
Fixed expenses 81,900
To calculate the break-even point in dollars, first, we need to determine the selling price and unitary variable cost:
Selling price= 240,000/4,000= $60
Unitary variable cost= 156,000/4,000= $39
Now, we can calculate the break-even point:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 81,900/ [(60 - 39) / 60]= $234,000
