A product sells for 275 per unit and its variable costs are...

A product sells for $275 per unit, and its variable costs are 68% of sales. The fixed costs are $345,600. What is the break-even point in sales dollars? (Do not round intermediate calculations.)

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Transcript

00:01 Hello students, we are given a question here.

00:03 A product sells for $275 per unit.

00:07 Okay.

00:08 And it's a variable cost are 60 percentage of the total sale.

00:12 If we are given also fixed cost also, what is the break even point? okay.

00:17 So here we are supposed to know that for break even point, break even point.

00:26 Okay, students, we can say that total sale.

00:31 Is equal to total costs okay now here we can let that the number of units the number of units be x so basically we can say that total sale will be total sales is equal to as we are given two seventy five dollar per unit it means two seventy five times x so basically two seventy five x now here we are supposed to know that total cost is equals to variable cost students plus variable cost plus fixed cost.

01:18 Now here as we are given variable cost is the 60 percentage of the total sale.

01:24 Total sale is 275x.

01:26 It means it's a 60 percentage.

01:28 So basically 0 .6 times of 275x plus fixed cost is already given as 3 .45 ,600.

01:40 Now here we can just write it as a 275 times 0 .6.

01:46 It is 165x plus 3 .45 ,600.

01:52 Okay, it is total cost dc.

01:54 Now for break on even point, we need to make it make them equal...