91.6k views
1 vote
Eva Company sells one product at a price of $25 per unit. Variable expenses are 40 percent of sales, and fixed expenses are $25,000. What is the sales dollars level required to break even

User Wynter
by
4.2k points

1 Answer

1 vote

Answer:

$41,667

Step-by-step explanation:

Break even (Sales dollars) = Fixed Cost ÷ Contribution margin ratio

therefore

the sales dollars level required to break even is $41,667

User Sybren
by
4.0k points