Question

Blythe Company has provided the following​ information: Sales price per unit $ 45 Variable cost per unit 18 Fixed costs per month $ 13 comma 000 What is the amount of sales in dollars required for Blythe to break​ even?

Answer 1

The break-even point for Blythe Company, calculated using the provided sales price per unit, variable cost per unit, and total fixed costs, is $21,666.67 in sales.

Step-by-step explanation:

To determine the break-even point for Blythe Company, we must calculate the sales in dollars required for the company to cover all of its costs (both variable and fixed). The formula to calculate the break-even point in dollars is:

Break-even point (in dollars) = Fixed Costs ÷ (1 - (Variable Cost per unit ÷ Sales Price per unit))

Using the information given:

• Sales Price per Unit = $45
• Variable Cost per Unit = $18
• Fixed Costs = $13,000

We plug these values into the formula:

Break-even point = $13,000 ÷ (1 - ($18 ÷ $45))

Break-even point = $13,000 ÷ (1 - 0.4)

Break-even point = $13,000 ÷ (0.6)

Break-even point = $21,666.67

Therefore, the break-even sales in dollars for Blythe Company is $21,666.67.

Answer 2

Break-even point (dollars)= $21,667

Step-by-step explanation:

Giving the following information:

Blythe Company has provided the following​ information: Sales price per unit $ 45 Variable cost per unit 18 Fixed costs per month $13,000

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

Break-even point (dollars)= 13,000 / [(45 - 18)/45]= $21,667