Answer:
The monthly break-even dollar sales is closest to $591,599.1
0
Explanation:
Break-even is derived fixed costs divided by contribution per unit
Fixed cost is $390,456
Contribution per unit =selling price per unit -variable cost per unit
selling price is $230 per unit
variable cost per unit is $78.20
Contribution per unit=$230-$78.20
Contribution per unit =$151.8
0
Break-even point in units=$390,456/$151.80
=2572.17 units
The break-even in monthly dollar sales=2572.17*$230
=$591,599.1
0
Break-even sales is the sales amount at which the company records neither gain nor losses,hence the company is only able to cover all costs incurred with no extra value in terms of retained earnings added to shareholders' investment let alone being able to distribute dividends from the same period retained earnings
