Answer:
1.- CM 13.25
2.- BEP units 2114 (round to the next higher whole number)
3.- BEP dollars $33,811.32 (nearest cent)
Explanation:
[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]
16 - 2.75 = 13.25
[tex]\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}[/tex]
28,000/13.25 = 2113.2075
[tex]\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}[/tex]
[tex]\frac{Contribution Margin}{Sales Revenue} = $Contribution Margin Ratio[/tex]
13.25/16 = 0.828125
28,000/0.828125 = 33811.32