Question

The following information pertains to the Flying Fig​ Corporation: Total Units for information given ​7,000 Fixed Cost per Unit ​$50 Selling Price per Unit ​$325 Variable Costs per Unit ​$175 Target Operating Income ​$200,000 What is the breakeven in sales​ dollars? (Round any intermediary calculations and your final answer to the nearest whole​ number.)

Answer 1

Break-even point (dollars)= $3,087,500

Step-by-step explanation:

Giving the following information:

Fixed Cost per Unit ​$50 Selling Price per Unit ​$325 Variable Costs per Unit ​$175 Target Operating Income ​$200,000.

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

Break-even point (dollars)= (175*7000 + 200,000)/[(325 - 175)/325]= $3,087,500