The Muffin House produces and sells a variety of muffins.The selling price per dozen is $15,variable costs are $9 per dozen,and total fixed costs are $4,200.What are breakeven sales in dollars?

Question

Quizplus · Accepted Answer

A)
Sales $15
Variable costs 9
Contribution Margin $ 6
Fixed Expenses $4,200 divided by Contribution Margin $6 = 700 Breakeven
Breakeven Sales units 700 × $15 = $10,500 Breakeven sales dollars

The Muffin House Produces and Sells a Variety of Muffins