The following data pertain to last month's operations: The break-even point in dollar sales is:

Name: The following data pertain to last month's operations: The break-even point in dollar sales is:
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Question

The following data pertain to last month's operations:  The break-even point in dollar sales is:

Quizplus · Accepted Answer

Contribution margin per unit = $20 - $12 - $3 = $5 per unit
Contribution margin ratio = $5 F1F1F1S1F1F1F10 $20 = 25%
Total fixed expenses = $3,000 + $1,500 = $4,500
Break-even point (in dollars) = Fixed expenses F1F1F1S1F1F1F10 Contribution margin ratio = $4,500 F1F1F1S1F1F1F10 25% = $18,000

The Following Data Pertain to Last Month's Operations: the Break-Even