Data concerning Sinisi Corporation's single product appear below:

-The break-even in monthly dollar sales is closest to:

Question

Data concerning Sinisi Corporation's single product appear below:
 
-The break-even in monthly dollar sales is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $200.00 per unit - $58.00 per unit = $142.00 per unit
CM ratio = Unit CM ÷ Unit selling price = $142.00 per unit ÷ $200.00 per unit = 0.71
Dollar sales to break even = Fixed expenses ÷ CM ratio
= $407,540 ÷ 0.71 = $574,000

Data Concerning Sinisi Corporation's Single Product Appear Below