Zumpano inc. produces and sells a single product. The selling price of the product is $170.00...

Zumpano inc. produces and sells a single product. The selling price of the product is $170.00 per unit and its variable cost is $73.10 per unit. The fixed expenses is $125,001 per month

The break-even in monthly dollar sales is closest to:

Expert Solution

break-even in monthly dollar sales is closest to $219,300

Selling Price	170
Variable cost	73.1
Contribution	96.90
Fixed Expenses	1,25,001

Contribution Margin % (96.90/170 *100)	57

So Breakeven = Fixed Cost / Contribution margin %
' 125,001 /57%
219300

ekkarill92 answered 3 years ago

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