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What is the BEP in sales dollars

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Reference no: EM132842427

Question - B&B produces and sells one single product: BT5. The production capacity of B&B is 48,000 units. Annual sales volume expected in 2021 is 40,000 units. The following information is estimated for 2021: selling price per unit: $100, variable cost per unit: $75, and annual fixed costs: $520,000.

Required - Answer the following questions in the spaces provided:

1. What is the available production capacity?

2. What is the contribution margin per unit?

3. What is the contribution margin ratio?

4. What is the break-even-point (BEP) in units?

5. What is the BEP in sales dollars?

Reference no: EM132842427

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