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

To calculate the break-even point in dollars, first find the contribution margin per unit, which is sales price per unit minus variable cost per unit: $40 - $18 = $22. Then, divide the total fixed costs by the contribution margin per unit to find the break-even point in units: $12,800 / $22 ≈ 581.82 units. Finally, multiply the break-even point in units by the sales price per unit to find the break-even point in dollars: 581.82 units * $40 ≈ $23,273.

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