Respuesta :
The monthly break-even point in units sold and sales in dollars are 12,200 units and $488,000 respectively.
The Break−even point in units sales can be calculated using the below-mentioned formula,
[tex]Break−Even Point In Units Sales = Fixed Expenses / Contribution Margin Per Unit[/tex]
Now, by using the specified values in the aforementioned calculation, we obtain,
[tex]Break−Even Point In Units Sales = $146,400/$12[/tex]
= 12,200 units
To calculate the Break−even point in dollars we first have to calculate the contribution margin ratio.
The Contribution margin ratio can be calculated using the below-mentioned formula
[tex]Contribution Margin Ratio = \frac{Contribution Margin Per Unit}{Selling Price Per Unit} * 100[/tex]
Now, by using the specified values in the aforementioned calculation, we obtain,
[tex]Contribution Margin Ratio = \frac{12}{40} * 100[/tex]
= 30%
[tex]Break−Even Point In Dollars = Fixed Expenses/Contribution Margin Ratio[/tex]
Now, by using the specified values in the aforementioned calculation, we obtain,
Break−even point in dollars = [tex]$146,400/30 Percent[/tex] = [tex]$146,400/0.30[/tex]
= $488,000
Hence, The monthly break-even point in units sold and in sales dollars is 12,200 units and $488,000 respectively.
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