50.
| A company manufactures and sells a product for $110 per unit. The company’s fixed costs are $58,760, and its variable costs are $80 per unit. The company’s break-even point in dollars is:(Round your intermediate calculations to two decimal places.) |
$80,795.
$58,760.
$1,959.
$217,630.
$156,693.
Answer : company’s break-even point in dollars is $ 1959
Working notes for the above answer is as under
We have been provided with the information as follow
sells a product for $110 per unit
fixed costs are $58,760, and
its variable costs are $80 per unit.
Now we will find BEP as follow
Particular
Amount in $
Sales
$ 110.00
Less:
Variable cost
$ 80.00
Contribution Margin
$ 30.00
The formulla of BEP= Fixed Cost / Contribution Margin
=58760/30
=1959
