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

Question

Shiraki 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

CM ratio = Unit contribution margin F1F1F1S1F1F1F10 Unit selling price
= ($200 per unit - $78 per unit)F1F1F1S1F1F1F10 $200 per unit
= $122 per unit F1F1F1S1F1F1F10 $200 per unit = 0.61
Dollar sales to break even = Fixed expenses F1F1F1S1F1F1F10 CM ratio
= $396,500 F1F1F1S1F1F1F10 0.61
= $650,000

Shiraki Corporation Produces and Sells a Single Product