Question

Assume the following information: egin{tabular}{lrr} & Amount & Per Unit \ hline Sales & ( $ 300,000 ) & ( $ 40 ) \ Variable expenses & 112,500 & 15 \ hline Contribution margin & 187,500 & ( $ 25 ) \ hline Fixed expenses & 32,000 & \ Net operating income & ( $ 155,500 ) & end{tabular} The dollar sales to break-even is:

          Assume the following information:
egin{tabular}{lrr} 
& Amount & Per Unit \
hline Sales & ( $ 300,000 ) & ( $ 40 ) \
Variable expenses & 112,500 & 15 \
hline Contribution margin & 187,500 & ( $ 25 ) \
hline Fixed expenses & 32,000 & \
Net operating income & ( $ 155,500 ) &
end{tabular}

The dollar sales to break-even is:

Assume the following information:
egintabularlrr
Amount Per Unit hline Sales ( 300,000 ) ( 40 ) Variable expenses 112,500 15 hline Contribution margin 187,500 ( 25 ) hline Fixed expenses 32,000 Net operating income ( 155,500 )
endtabular

The dollar sales to break-even is:

Added by Joel W.

Algebra and Trigonometry

Cynthia Y. Young 4th Edition

Chapter 2

Instant Answer

Solved by Expert Luke Humphrey

05/01/2024

Step 1

The formula for this is Fixed Expenses / Contribution Margin per Unit. So, in this case, it would be $32,000 / $25 = 1,280 units. Then, to find the dollar sales to break-even, we multiply the break-even point in units by the sales price per unit. So, 1,280 Show more…

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