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

Question

Vandinter 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

Contribution margin per unit = Selling price per unit - Variable cost per unit = $64 - $28 = $36
Break-even point in units = Fixed costs / Contribution margin per unit = $1,417,600 / $36 = 39,400 units
Break-even point in sales dollars = Break-even point in units x Selling price per unit = 39,400 x $64 = $2,521,600
Therefore, the closest answer is B) $670,400.

Vandinter Corporation Produces and Sells a Single Product