The selling price of a Road King bicycle is $700,unit variable costs are $350,and total fixed costs are $12,600.What are breakeven sales in dollars?

Name: The selling price of a Road King bicycle is $700,unit variable costs are $350,and total fixed costs are $12,600.What are breakeven sales in dollars?
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Question

Quizplus · Accepted Answer

D)
Sales $700
Less Variable costs 350
= Contribution Margin $350
Fixed expenses $12,600 divided by Contribution Margin $350 = 36 BE units
× $700 Sales Price = $25,200

The Selling Price of a Road King Bicycle Is $700,unit