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.)
A) $711
B) $23,273
C) $582
D) $12,800

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.)
A) $711
B) $23,273
C) $582
D) $12,800

Quizplus · Accepted Answer

To calculate the break-even point in dollars, use the formula: Break-even point = Fixed costs / (1 - (Variable cost per unit / Sales price per unit)). Plugging in the given values: $12,800 / (1 - ($18 / $40)) = $12,800 / (1 - 0.45) = $12,800 / 0.55 = $23,272.73, rounded to the nearest dollar is $23,273.

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