Zumpano Inc.produces and sells a single product.The selling price of the product is $170.00 per unit and its variable cost is $73.10 per unit.The fixed expense is $125,001 per month. The break-even in monthly dollar sales is closest to:

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Quizplus · Accepted Answer

CM ratio = Unit contribution margin F1F1F1S1F1F1F10 Unit selling price
= ($170.00 per unit - $73.10 per unit)F1F1F1S1F1F1F10 $170.00 per unit
= $96.90 per unit F1F1F1S1F1F1F10 $170.00 per unit = 0.57
Dollar sales to break even = Fixed expenses F1F1F1S1F1F1F10 CM ratio
= $125,001 F1F1F1S1F1F1F10 0.57
= $219,300