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How do you find the break-even point in sales dollars with this information?
Question
Asked 11/12/2008 9:24:12 AM
Updated 67 days ago|9/26/2023 11:33:08 AM
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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
Asked 11/12/2008 9:24:12 AM
Updated 67 days ago|9/26/2023 11:33:08 AM
1 Answer/Comment
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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
This answer has been confirmed as correct and helpful.
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