Fixed costs = $84,000
Contribution margin ratio = 24%
To find the break-even point in sales dollars:
Break-even in sales = Fixed costs/contribution margin ratio
Break-even in sales = 84,000/0.24
Break-even in sales = $350,000
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Answer:
BUDGETED PRODUCTION
Units
Budgeted sales 35,000
Add: Closing inventory <u>3,000</u>
38,000
Less: Beginning inventory <u>5,000</u>
Production budget <u> 33,000</u>
The options are incorrect. The correct answer is 33,000 units.
Explanation:
Production budget is budgeted sales plus closing inventory minus beginning inventory.