Question

Menlo Company distributes a single product. The company’s sales and expenses for last month follow: sales 616,000 net operating income 31,200 g.What is the monthly break-even point in unit sales and in dollar sales?

Answer 1

Step-by-step explanation:

Giving the following information:

The company’s sales and expenses for last month follow: sales 616,000 net operating income 31,200

Break-even point= fixed costs/ contribution margin

Break-even point (dollars)= fixed costs/ contribution margin ratio

Contribution margin= selling price - unitary variable cost

Contribution margin ratio= contribution margin/ selling price