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assume a sales price per unit of $25 variable cost per unit $15 and total fixed...

assume a sales price per unit of $25 variable cost per unit $15 and total fixed costs of $15480. what is the breakeven point in dollars

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Answer #1

Contribution margin ratio = (Selling price per unit - Variable cost per unit) / Selling price per unit

= ($25 - $15) / $25

= 0.4

Break-even point in dollars = Fixed costs / Contribution margin ratio

= $15,480 / 0.4

= $38,700

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