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Exercise 19-16 (Part Level Submission) Glacial Company estimates that variable costs will be 53.1 % of...

Exercise 19-16 (Part Level Submission)

Glacial Company estimates that variable costs will be 53.1 % of sales, and fixed costs will total $ 710,000 . The selling price of the product is $ 3.50 .

(b)

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Compute the break-even point in (1) units and (2) dollars. (Round intermediate calculation to 2 decimal places, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,275.)
(1) Break-even sales units
(2) Break-even sales $
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Answer #1
Contribution margin % = 1- variable cost %
=1-0.531
=0.469 or 46.9%
Conrrbution margin per unit = $3.50*46.9%
=1.6415
Break-even Point In Unit = Fixed Cost/ Contribution Margin Per Unit
= $710000/1.64
=432927 units
Break-even point in units = fixed cost / contribution margin %
=$710000/0.469
=$ 1513859 or 1515245
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