Question
In: Accounting
Selling price $5.00 and the unit contribution margin is $2.20 and the fixed cost $5000. Calculate...
Selling price $5.00 and the unit contribution margin is $2.20 and the fixed cost $5000. Calculate X Ltd's break-even point in sales dollars?
Solutions
Expert Solution
As per the information provided for X Ltd. :
Sales Price $ 5.00
Unit Contribution Margin $ 2.20
Fixed cost $ 5000
First of all, we need to calculate , break even point sales in units:
Break even point sales (Unit) = Fixed cost / unit contribution margin
= $ 5000 / $ 2.20
= 2272.72 units (i.e 2273 units)
Break even point sales in dollers = Break even point units * sales price per unit
= 2273 * $ 5.00
= $ 11,365.00
ekkarill92 answered 2 years agoRelated Solutions
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