Question 1
Calculate the breakeven point in dollars from the following information. Selling price per unit is $50, variable costs per unit are $30 and fixed costs for the year are $25 000
a. 
$1 250 

b. 
Unable to be determined from the information given 

c. 
$83 333 

d. 
$41 667 

e. 
$62 500 
1 points
Question 2
If McLeod Ltd’s selling price is $50 per unit, fixed costs are $499 800, and the contribution margin ratio is 0.34. The breakeven in sales dollars (rounded to the nearest dollar) is:
a. 
$499 800 

b. 
$169 932 

c. 
$1 470 000 

d. 
Unable to be determined from the information given 

e. 
$757 273 
A1. The correct answer is Option (E) $62,500
Break Even Point in dollars = Total Fixed Costs / Contribution Margin (CM) Ratio
CM Ratio = CM / Selling Price per unit
= (5030) / 50
= 20 / 50
= 0.4
Break Even Point = $25,000 / 0.4
= $62,500
A2. The correct answer is Option (C) $1,470,000
Break Even Point in dollars = Total Fixed Costs / Contribution Margin (CM) Ratio
= $499,800 / 0.34
= $1,470,000
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