Hurst Company sells hand-sewn shirts for $40 per shirt. It incurs monthly fixed costs of $7,000. The contribution margin ratio is calculated to be 50%. What is the breakeven point in units? (Round your answer up to the nearest whole unit.)
A) 175 units
B) 3,500 units
C) 80 units
D) 350 units
D .D) Required sales in dollars = (Fixed costs + Target profit) / Contribution margin ratio
Required sales in dollars = ($7,000 + 0 ) / 50% = $14,000.00
Number of units to be sold to break even = $14,000.00 / $40 = 350 units
You might also like to view...
The keys to successful report writing include identifying the who, what, when, and why of the report
Indicate whether the statement is true or false
If organizational culture and leadership are identified as barriers to change, then they would be called ______.
a. disincentives b. a competitive disadvantage c. motivators d. economic challengers
The IBRD is a major institution of the World Bank whose function is to loan to
A. middle-income and creditworthy poor nations. B. countries whose income levels make them not creditworthy. C. private individuals in developing nations whose entrepreneurial efforts support development. D. private-sector development-focused firms.
A full warranty requires free repair or replacement of any defective part.
Answer the following statement true (T) or false (F)