Question

Tumble Company sells coats for $265.32 each. The variable costs per coat are $68.83 and the fixed costs per month are $44206. How many coats must be sold to break even in a month?

Answer 1

To break even in a month, Tumble Company must sell at least 236 coats.

Step-by-step explanation:

To calculate the break-even point, we'll use the formula: Break-even point = Fixed costs / (Selling price per unit - Variable costs per unit)

Given: Selling price per coat = $265.32, Variable costs per coat = $68.83, Fixed costs per month = $44206.

Substituting the values into the formula: Break-even point = $44206 / ($265.32 - $68.83) = 235.3

Therefore, Tumble Company must sell at least 236 coats to break even in a month.