Blackner corporation produces and sells a single product. data concerning that product appear below: selling price per unit $220.00 variable expense per unit $70.40 fixed expense per month $492,184 the break-even in monthly dollar sales is closest to:

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DizzyBerco DizzyBerco · Answer 1 · 2019-03-17T19:06:25+01:00

Answer:

$723,800

Step-by-step explanation:

To find the break even point, we first need to find the number of units needed for the break even point using the formula:

[tex]BreakEvenPointInUnits=\dfrac{FixedCost}{SalesPricePerUnit-VariableCostPerUnit}[/tex]

Let's break down the variables that we have.

Fixed Cost = $492,184

Sales Price Per Unit = $220.00

Variable Cost Per Unit = $70.40

Now let's use the formula and input all the values.

[tex]BreakEvenPointInUnits=\dfrac{$492,184}{$220.00-$70.40}[/tex]

[tex]BreakEvenPointInUnits=\dfrac{$492,184}{$149.6}[/tex]

[tex]BreakEvenPointInUnits=3,290Units[/tex]

Now that we know the amount of units needed to break even, we then use the formula:

[tex]BreakEvenPointsInDollars=SalesPriceperUnitxBreakEvenPointInUnits[/tex]

[tex]BreakEvenPointsInDollars=$220.00x3,290[/tex]

[tex]BreakEvenPointsInDollars=$723,800[/tex]

So this means the the break-even in monthly dollar sales is closest to $723,800.