Wettway Sailboat Corporation is considering whether to launch its new Margo-class sailboat. The selling price will...

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Wettway Sailboat Corporation is considering whether to launch its new Margo-class sailboat. The selling price will be $48,000

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Answer 1

Answer #1

Cash break even = Fixed cost excluding depreciation / Contribution margin per unit
= $535,000 / ($48,000 - $27,000)/48,000
= $535,000 / 0.4375
= 1,222,857.14

Cash break even = 1.222,857.14

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Answer 2

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