Junior Bodway, Inc., has provided the following budgeted data: What is the company's break-even point in sales dollars?

Question

Junior Bodway, Inc., has provided the following budgeted data:  What is the company's break-even point in sales dollars?

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $50 per unit - $30 per unit = $20 per unit
Unit sales to break even = Fixed expenses ÷ Unit CM
= $180,000 ÷ $20 per unit = 9,000 units
Dollar sales to break even = $50 per unit × 9,000 units = $450,000