IDNLearn.com provides a user-friendly platform for finding and sharing accurate answers. Our Q&A platform offers reliable and thorough answers to ensure you have the information you need to succeed in any situation.
Sagot :
Answer:
On-The-Go Merchandiser
Operating break-even point:
a) in sales dollars = $3,000,000
b) in sales unit = 2,500 units
Explanation:
a) Data and Calculations:
Selling price per unit = $1,200
Fixed operating costs = $600,000
Capacity level = 5,000
Variable cost ratio = 80%
Variable cost per unit = $960 ($1,200 * 80%)
Contribution margin per unit = $240 ($1,200 - $960)
Contribution margin ratio = $240/$1,200 = 0.2
Operating break-even point:
a) in sales dollars = Fixed operating costs/Contribution margin ratio
= $600,000/0.2 = $3,000,000
b) in sales unit = Fixed operating costs/Contribution margin per unit
= $600,000/$240 = 2,500 units
We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and come back for more insightful information.