The monthly break-even point in units sold and sales in dollars are 12,200 units and $488,000 respectively.
The Break−even point in units sales can be calculated using the below-mentioned formula,
Now, by using the specified values in the aforementioned calculation, we obtain,
= 12,200 units
To calculate the Break−even point in dollars we first have to calculate the contribution margin ratio.
The Contribution margin ratio can be calculated using the below-mentioned formula
Now, by using the specified values in the aforementioned calculation, we obtain,
= 30%
Now, by using the specified values in the aforementioned calculation, we obtain,
Break−even point in dollars = =
= $488,000
Hence, The monthly break-even point in units sold and in sales dollars is 12,200 units and $488,000 respectively.
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