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
First, we need to calculate the selling price and unitary variable cost:
Selling price= 240,000/4,000= $60 per unit
Unitary variable cost= 156,000/4,000= $39 per unit
Now, we can calculate the break-even point in dollars, using the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 81,900/ [(60 - 39)/60]
Break-even point (dollars)= $234,000
