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Sales Price: $50.00 per unit Variable Costs: $20.00 per unit Total Fixed Costs: $90,000 What is...

Sales Price: $50.00 per unit Variable Costs: $20.00 per unit Total Fixed Costs: $90,000 What is the break-even point in sales dollars?

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Answer #1

Answer:

Break even point in dollar = Total Fixed Cost / (sale price per unit - Variable cost per unit)/ sales

BEP = fixed cost / contibution margin

Sale price = $ 50 per unit

Variable Cost = $ 20 per unit

Fixed Cost = $ 90,000

Contribution margin = (sales per unit - variable cost)/ sales

= (50-20)/50

=0.6

Break even Point = 90,000 / 0.6

= 1,500,000

Hope this meets your purpose.

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