Zanetti Corporation produces and sells a single product. Data concerning that product appear below: The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Zanetti Corporation produces and sells a single product. Data concerning that product appear below:  The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $110.00 per unit - $34.10 per unit = $75.90 per unit
CM ratio = Unit CM ÷ Unit selling price = $75.90 per unit ÷ $110.00 per unit = 0.69
Dollar sales to break even = Fixed expenses ÷ CM ratio
= $132,066 ÷ 0.69 = $191,400

Zanetti Corporation Produces and Sells a Single Product