Blythe Company has provided the following information: $$\begin{array} { | l | r | }
\hline \text { Sales price per unit } & \$ 40 \
\hline \text { Variable cost per unit } & 18 \
\hline \text { Fixed costs per month } & \$ 12,800 \
\hline
\end{array}$$ What is the amount of sales in dollars required for Blythe to break even? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

Question

Blythe Company has provided the following information: $$\begin{array} { | l | r | } 
\hline \text { Sales price per unit } & \$ 40 \
\hline \text { Variable cost per unit } & 18 \
\hline \text { Fixed costs per month } & \$ 12,800 \
\hline
\end{array}$$ What is the amount of sales in dollars required for Blythe to break even? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

Quizplus · Accepted Answer

To find the break-even point in sales dollars, use the formula: Break-even sales = Fixed Costs / (1 - Variable Cost per Unit / Sales Price per Unit). Here, it is $12,800 / (1 - $18/$40) = $23,273.

Blythe Company Has Provided the Following Information What Is the Amount of Sales in Dollars Required for l