Question

A product sells for $200 per unit, and its variable costs are 61% of sales. The fixed costs are $456,300. What is the break-even point in sales dollars? (Do not round intermediate calculations.)

Answer 1

Answer:

Break-even point in sales dollars = $1,170,000

Explanation:

Computation table:

Sales                   200

Less VC (61%)     122

Contribution       78

Fixed costs = $456,300

break-even point in units = FC / C = 5,850

break-even point in sales dollars = (break-even point in units)(Sales price) = $1,170,000