Gredvig, Inc. produces and sells a single product. Data concerning that product appear below Selling price...
Gredvig, Inc. produces and sells a single product. Data concerning that product appear below
Selling price per unit$ 130.00
Variable expense per unit$ 41.60
Fixed expense per month$ 109,616
The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
$109,616
$161,200
$342,550
$204,455
Homework Answers
Contribution margin=Sales-Variable cost
=(130-41.6)=$88.4
Contribution margin ratio=Contribution margin/Sales
=88.4/130
=0.68
Breakeven=Fixed expenses/Contribution margin ratio
=109,616/0.68
=$161200
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