Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $19
Unitary variable cost= $15
Fixed costs= $12,000
<u>To calculate the break-even point in units and dollars, we need to use the following formulas:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 12,000 / 4
Break-even point in units= 3,000
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 12,000 / (4/19)
Break-even point (dollars)= $57,000
<u>Now, the fixed costs are $12,600:</u>
Break-even point in units= 12,600 / 4
Break-even point in units= 3,150
Break-even point (dollars)= 12,600 / (4/19)
Break-even point (dollars)= $59,850
