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

Question

Quizplus · Accepted Answer

Unit CM = Selling price per unit - Variable expenses per unit
= $140.00 per unit - $44.80 per unit = $95.20 per unit
CM ratio = Unit CM F1F1F1S1F1F1F10 Unit selling price = $95.20 per unit F1F1F1S1F1F1F10 $140.00 per unit = 0.68
Dollar sales to break even = Fixed expenses F1F1F1S1F1F1F10 CM ratio
= $164,696 F1F1F1S1F1F1F10 0.68 = $242,200

Smotherman Corporation Produces and Sells a Single Product