Question

Belle Corp. has a selling price of $56 per unit, variable costs of $46 per unit, and fixed costs of $77,000. What sales revenue is needed to break-even

Answer 1

Break-even point (dollars)= $431,200

Step-by-step explanation:

Giving the following information:

Selling price= $56 per unit

Unitary variable costs= $46

Fixed costs= $77,000

To calculate the break-even point in sales, we need to use the following formula:

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

Break-even point (dollars)= 77,000 / [(56 - 46) / 56]

Break-even point (dollars)= $431,200