How do you find the break-even point in sales dollars with this information?
Question
Updated 67 days ago|9/26/2023 11:33:08 AM
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Original conversation
User: How do you find the break-even point in sales dollars with this information?

Weegy: The break even point is sales dollars may be very diffucult to find.

User: How do you find the break-even points in sales dollar with this information? direct materials \$40.00 per unit, direct labor 8.00 per unit, variable overhead 14.00 per unit, fixed overhead 10.00 per unit, variable selling 3.00 per unit, fixed general and administrative 9 per unit, units produced 10,000 per month, units sold 9,400, selling price 90.00 per unit.

Question
Updated 67 days ago|9/26/2023 11:33:08 AM
Rating
3
Solution:
Total Variable Cost per Unit = \$40.00 + \$8.00 + \$14.00 + \$3.00 = \$65.00 per unit
Total Fixed Cost per Unit = \$10.00 + \$9.00 = \$19.00 per unit
Contribution Margin per Unit = \$90.00 - \$65.00 = \$25.00 per unit
Break-Even Point (in units) = \$19.00 / \$25.00 0.76 units
Break-Even Point (in sales dollars) = 1 unit × \$90.00 = \$90.00

The break-even point in sales dollars is \$90.00.
Added 67 days ago|9/26/2023 11:33:08 AM

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