The following data pertain to last month's operations: The break-even point in dollars is:

Question

The following data pertain to last month's operations:  The break-even point in dollars is:

Quizplus · Accepted Answer

Unit contribution margin = Selling price per unit - Variable expenses per unit
= $30 per unit - $15 per unit = $15 per unit
CM ratio = Unit contribution margin F1F1F1S1F1F1F10 Unit selling price
= ($30 per unit - $15 per unit)F1F1F1S1F1F1F10 $30 per unit
= $15 per unit F1F1F1S1F1F1F10 $30 per unit = 0.50
Dollar sales to break even = Fixed expenses F1F1F1S1F1F1F10 CM ratio
= ($80,000 + $40,000)F1F1F1S1F1F1F10 0.50
= $120,000 F1F1F1S1F1F1F10 0.50
= $240,000

The Following Data Pertain to Last Month's Operations: the Break-Even