Answer 1.
Let breakeven point in units be x
Profit = Sales - Variable expenses - Fixed expenses
0 = $19 * x - $16.34 * x - $3,458
$2.66 * x = $3,458
x = 1,300 units
Breakeven point in unit sales = 1,300 units
Answer 2.
Contribution margin ratio = (Selling price per unit - Variable
cost per unit) / Selling price per unit
Contribution margin ratio = ($19.00 - $16.34) / $19.00
Contribution margin ratio = 14%
Let breakeven point in dollar sales be $x
Profit = Sales * Contribution margin ratio - Fixed
expenses
0 = $x * 0.14 - $3,458
$3,458 = $x * 0.14
$x = $24,700
Breakeven point in dollar sales = $24,700
Answer 3.
Contribution margin per unit = Selling price per unit - Variable
cost per unit
Contribution margin per unit = $19.00 - $16.34
Contribution margin per unit = $2.66
Breakeven point in unit sales = Fixed expenses / Contribution
margin per unit
Breakeven point in unit sales = $3,458 / $2.66
Breakeven point in unit sales = 1,300
Breakeven point in unit sales = 1,300 units
Answer 2.
Contribution margin ratio = (Selling price per unit - Variable
cost per unit) / Selling price per unit
Contribution margin ratio = ($19.00 - $16.34) / $19.00
Contribution margin ratio = 14%
Breakeven point in unit sales = Fixed expenses / Contribution
margin ratio
Breakeven point in unit sales = $3,458 / 0.14
Breakeven point in unit sales = $24,700
Breakeven point in dollar sales = $24,700
Mauro Products distributes a single product, a woven basket whose selling price is $19 and whose variable expense i...
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