Answer:
Break-even point (dollars)= $431,200
Explanation:
Giving the following information:
Selling price= $56 per unit
Unitary variable costs= $46
Fixed costs= $77,000
To calculate the break-even point in sales, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 77,000 / [(56 - 46) / 56]
Break-even point (dollars)= $431,200
