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

The break-even point in sales dollars is calculated by dividing the total fixed costs by the contribution margin ratio. The contribution margin per unit is $40 - $18 = $22. The contribution margin ratio is $22 / $40 = 0.55. The break-even sales in dollars is $12,800 / 0.55 = $23,273.

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