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Calculate the break-even point in sales dollars for recline

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Reference no: EM132569030

Cost-Volume Profit Analysis

Recline Company is planning to produce and sell 10,000 units of its only product at a unit price of $100. At this sales level Recline Company will generate $330,000 in total contribution margin and incur fixed costs of $25/unit.

Question a. Calculate Recline's contribution margin ratio. Round answer to the nearest whole percentage (ex: 0.3456 = 35%)

Question b. Calculate the break-even point in sales dollars for Recline. Use your rounded answer from part a. above and then round final answer to the nearest dollar.

Reference no: EM132569030

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