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Mitchell Corporation manufactures a single product.The selling price is $85 per unit,and variable costs amount to $68 per unit.The fixed costs are $16,500 per month.
-What is the monthly sales volume in dollars necessary to break-even?

Question

Quizplus · Accepted Answer

To calculate the break-even point in dollars, you use the formula: Break-even point = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Plugging in the given numbers: $16,500 / ($85 - $68) = $16,500 / $17 = 970.59 units. To find the break-even sales volume in dollars, multiply the number of units by the selling price per unit: 970.59 units * $85 = $82,500.

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