Question

Wimpy Inc. produces and sells a single product. The selling price of the product is $195.00...

Wimpy Inc. produces and sells a single product. The selling price of the product is $195.00 per unit and its variable cost is $78.00 per unit. The fixed expense is $348,660 per month.

The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

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Answer #1

The break-even in monthly dollar sales is closest to: $581,100

Working

A Sale Price per unit $                195.00
B Variable Cost per Unit $                  78.00
C=A x B Unit Contribution $                117.00
D Total Fixed cost $      348,660.00
E=D/C Breakeven point in units                2,980.00
F= E x A Breakeven in sales dollars $            581,100
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