What is the break-even point in dollars in units

Reference no: EM132083211

Question: Volodya Company reported the following data regarding the product it sells:

Sales price Contribution margin ratio Fixed costs $20 40% $900,000

Required: Use the contribution margin ratio approach and consider each requirement separately.

What is the break-even point in dollars? In units?

To obtain a profit of $360,000, what must the sales be in dollars? In units?

If the sales price increases to $24 and variable costs do not change, what is the new break-even point in dollars? In units?

Sales price Contribution margin ratio Fixed costs $20 40% $900,000

Reference no: EM132083211

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