Blackner Corporation produces and sells a single product.Data concerning that product appear below: The break-even in monthly dollar sales is closest to:

Question

Blackner Corporation produces and sells a single product.Data concerning that product appear below:  The break-even in monthly dollar sales is closest to:

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $220.00 per unit - $70.40 per unit = $149.60 per unit
CM ratio = Unit CM ÷ Unit selling price = $149.60 per unit ÷ $220.00 per unit = 0.68
Dollar sales to break even = Fixed expenses ÷ CM ratio
= $492,184 ÷ 0.68 = $723,800

Blackner Corporation Produces and Sells a Single Product