Data concerning Follick Corporation's single product appear below: The break-even in monthly dollar sales is closest to:
A)$1,148,400
B)$638,851
C)$321,552
D)$446,600

Question

Data concerning Follick Corporation's single product appear below:  The break-even in monthly dollar sales is closest to:
A)$1,148,400 
B)$638,851 
C)$321,552 
D)$446,600

Quizplus · Accepted Answer

CM ratio = Unit contribution margin ÷ Unit selling price
= ($110.00 per unit - $30.80 per unit)÷ $110.00 per unit
= $79.20 per unit ÷ $110.00 per unit = 0.72
Dollar sales to break even = Fixed expenses ÷ CM ratio
= $321,552 ÷ 0.72
= $446,600

Data Concerning Follick Corporation's Single Product Appear Below: the Break-Even