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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
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