If the sale price per unit is $30.00,the variable expense per unit is $21,and total fixed expenses are $300,000,what are the breakeven sales in dollars?

Question

Quizplus · Accepted Answer

The breakeven point in sales dollars is calculated by dividing the total fixed expenses by the contribution margin ratio. The contribution margin per unit is $30 - $21 = $9. The contribution margin ratio is $9 / $30 = 0.3. Therefore, the breakeven sales in dollars is $300,000 / 0.3 = $1,000,000.

If the Sale Price Per Unit Is $30