Dustin Johnson produces extremely high quality golf shirts with Dri-Fit technology that sell for $120.00 each....
Dustin Johnson produces extremely high quality golf shirts with Dri-Fit technology that sell for $120.00 each. The total fixed costs for a month are $350,000. The variable costs per shirt are $50.00 Find the break-even point in sales units for Dustin. .
|
2,500 shirts |
||
|
5,000 shirts |
||
|
3,000 shirts |
||
|
4,000 shirts |
Homework Answers
Answer:
Break-even point in sales units for Dustin = 5,000 shirts
Working notes for the above answer is as under
|
Selling price |
120 |
|
Less: variable cost |
50 |
|
Contribution margin per unit(120-50) |
70 |
break even point in units
=Fixed cost / Contribution margin per unit
=350,000/70
=5,000 units
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