In Scenario 14-2 above,Benjamin would like to determine his breakeven point in dollars instead of pen rentals.When he calculated this using the original data,his breakeven point would be

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The breakeven point in dollars is calculated by dividing the fixed costs by the contribution margin per unit. The contribution margin per unit is the difference between the selling price per unit and the variable cost per unit. In this case, the fixed costs are $1,000, the selling price per unit is $12, and the variable cost per unit is $3. Therefore, the contribution margin per unit is $9. Dividing the fixed costs by the contribution margin per unit gives a breakeven point of $1,000 / $9 = $111.11. Multiplying this by the number of units sold per month (100) gives a breakeven point in dollars of $111.11 * 100 = $11,111.

In Scenario 14-2 Above,Benjamin Would Like to Determine His Breakeven