Question

Sandhill Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal alumni of over 2,100 schools. Sandhill's variable costs are 41% of sales; fixed costs are $118,000 per month (21) Your answer is correct. Calculate contribution margin ratio. (Round ratio to 2 percentage places, e.g. 0.38 38%.) Contribution margin ratio 59 % e Textbook and Media Attempts: 1 of 12 used (22) Your answer is correct. What is Sandhill's annual breakeven point in sales dollars? (Use the rounded contribution margin ratio calcuated in the previous part to compute breakeven sales.) Breakeven sales $ 2400000
can someone how show me how to do breakeven sale (C.)? Thanks you

Answer 1

Answer-------

Break even sales = $241,509

Please leave comment in case answer do not tally

Working

	Current	Changes	Changed particulars
Sales price	$              50.00	50 x 111%	$              55.50
Variable expense %	41%		47%
Contribution margin %	59%	(100%-47%)	53%
Fixed cost	$ 1,18,000.00	118000+10000	$ 1,28,000.00
Variable cost per unit	$ 20.50	(50 x 47%)	$ 23.50*

*Variable cost is 47% of current sales price not changes sales price.

A	Sale Price per unit	$                  55.50
B	Variable Cost per Unit (50 x 47%)	$                  26.09
C=A x B	Unit Contribution	$                  29.42
D	Total Fixed cost	$      1,28,000.00
E=D/C	Breakeven point in units	4352
F= E x A	Breakeven in sales dollars	$            2,41,509