Madison 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 Madison to break even? (Round any percentages to two decimal places and your final answer to the nearest dollar. )

Question

Madison 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 Madison to break even? (Round any percentages to two decimal places and your final answer to the nearest dollar. )

Quizplus · Accepted Answer

To find the break-even point in sales dollars, use the formula: Break-even sales = Fixed Costs / (1 - (Variable Cost per Unit / Sales Price per Unit)). Here, it is $12,800 / (1 - (18/40)) = $23,273.

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