Question

Belle Corp. has a selling price of $53 per unit, variable costs of $42 per unit, and fixed costs of $91,300. What sales revenue is needed to break-even

Answer 1

Break-even point = $440,000(Approx.)

Step-by-step explanation:

Given:

Selling price = $53 per unit

Variable costs = $42 per unit

Fixed costs = $91,300

Find:

Amount break-even point

Computation:

Contribution margin = [Sales -VC] / Sales

Contribution margin = [53-42] / 53

Contribution margin = 20.75%(Approx.)

Break-even point = Fixed costs / Contribution margin

Break-even point = 91300 / 20.75%

Break-even point = $440,000(Approx.)