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21-Homework Saved Help Seve& Exit Submit Check my work QS 21-8 Contribution mergin retio and break-even dollars LO P2 SBD Phone Company sells ts wateproof phone case for $128 per unit Fixed costs total $257,000, and variable costs are $58 per unn Break-even point in dollars 峊显
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Answer #1
1) Determine the contribution margin ratio
per unit
Selling price per unit 128
less: Variable cost per unit 58
contribution margin 70
2) Contribution margin ratio
Choose Numerator         / Choose Denominator = Contribution margin ratio
Contribution margin   / selling price per unit = contribution margin ratio
70 / 128 = 54.69%
3) Determine the break even point in dollars
Choose Numerator         / Choose Denominator = Contribution margin ratio
fixed cost    / contribution margin ratio   = = break even point in dollars
257000 / 54.69% = 469943
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