Madlem, Inc., produces and sells a single product whose selling price is $280.00 per unit and whose variable expense is $168.00 per unit. The company’s fixed expense is $201,600 per month. Required: Determine the monthly break-even in either unit or total dollar sales. Show your work!

Question

735 viewsOctober 12, 2016

0

Darshita 6.14K October 12, 2016 0 Comments

Madlem, Inc., produces and sells a single product whose selling price is $280.00 per unit and whose variable expense is $168.00 per unit. The company’s fixed expense is $201,600 per month.

Required: Determine the monthly break-even in either unit or total dollar sales. Show your work!

1 Answer

score 0 · Answer 1 · 2016-10-12T09:23:39+00:00

Answer :

Monthly BEP
In units	1800
In dollar	504000

Working notes for the above anser is as follow

We have provided with the information as under

product whose selling price is $280.00

whose variable expense is $168.00 per unit

fixed expense is $201,600 per month

BEP = Fixed cost / Contribution

contribution we will find as follow

Particular	$ Per unit
Selling price (A)	280
variable cost (B)	168
Contribution (A-B)	112

So break even point is = $ 201600 / 112

= = 1800 units

Monthly BEP
In units	1800
In dollar	504000

1 Answer

Contact us today