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Sun cover manufactures umbrellas for a monthly fixed cost of $675,921.00 and a
variable cost per umbrella of $42.15. determine the break-even sales price per umbrella if sun cover manufactures 8,573 umbrellas per month
$109.95
$114.50
$120.99
$131.25

Respuesta :

The break-even sales price per umbrella if sun cover manufactures the units is $120.99.

How to calculate the sales price?

This can be done by using the formula:

Break even units = Total fixed cost / (Price - Variable cost)

8573 = 675921/(Price - 42.15)

8573(P - 42.15) = 675921

8573P - 361351.95 = 675921

8573P = 675921 + 361351.95

8573P = 1037273.4

P = 1037273.4/8574

P = $120.99

Therefore, the price is $120.99.

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