Question

Data concerning Trak Corporation's single product appear below: Selling price per unit $ 290.00 Variable expense...

Data concerning Trak Corporation's single product appear below:

Selling price per unit $ 290.00
Variable expense per unit $ 78.30
Fixed expense per month $ 161,330

The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

a. $221,000

b. $161,330

c. $442,000

d. $280,670

Business   Accounting   
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Homework Answers

Answer #1

The answer is option a. $221000. Here is the calculation for it.

The break- even in monthly dollar sales = Break-even point in units * Selling price per unit

First we have to calculate Break-even point in units

Break-even point in units = Fixed costs / (Selling price per unit - Variable cost per unit)

= 161330/(290-78.3)

= 161330/ 211.7

Break-even point in units = 762.07

The break-even in monthly dollar sales = Break-even point in units * Sellin

= 762.07*290

= 221000.3

The break-even in monthly dollar sales= $221000

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