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What is the break-even point in sales dollars

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Reference no: EM132479511

Point 1: TrailPacker produces rugged backpacks for outdoor sports (hiking, rock climbing, etc.) Their backpacks are sold at many specialty outdoor stores across the country. The cost of manufacturing and marketing their backpacks, at their normal factory volume of 20,000 backpacks per month, is shown in the table below. TrailPacker sells these backpacks for $50 each. TrailPacker is making a small profit, but they would prefer to increase their Operating Income.

Question a) What is their monthly fixed cost, variable cost per backpack, and contribution margin per backpack?

Question b) What is the break-even point in units?

Question c) What is the break-even point in sales dollars?

Reference no: EM132479511

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