Data concerning Kuralt Corporation's single product appear below: The break-even in monthly dollar sales is closest to:

Question

Data concerning Kuralt Corporation's single 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 - $57.20 per unit = $162.80 per unit
CM ratio = Unit CM ÷ Unit selling price = $162.80 per unit ÷ $220.00 per unit = 0.74
Dollar sales to break even = Fixed expenses ÷ CM ratio
= $310,948 ÷ 0.74 = $420,200

Data Concerning Kuralt Corporation's Single Product Appear Below: the Break-Even