Answer:
Break-even point (dollars)= $1,104,000
Explanation:
Giving the following information:
The company's new monthly fixed expenses would be $331,200.
Selling price= 24
Unitary variable cost= (772,800/46,000)= 16.8 per unit
With this information we can calculate the break-even point both in units and dollars:
Break-even point= fixed costs/ contribution margin
Break-even point= 331,200/ (24 - 16.8)= 46,000 units
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 331,200/ (7.2/24)= $1,104,000
