Homework Answers
| Contribution margin ratio = Contribution margin / Sales |
| Contribution margin ratio = $398,930 / $973,000 |
| Contribution margin ratio = 41% |
| Break-even point in dollars = Fixed costs / contribution margin ratio |
| Break-even point in dollars = ($147,340+$51,430+$29,190) / 41% |
| Break-even point in dollars = $556,000 |
| Break-even point in units = Fixed costs / contribution margin per unit |
| Break-even point in units = ($147,340+$51,430+$29,190) / ($398,930/1,390) |
| Break-even point in units = 794 Units |
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