Frisch Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit$170.00Variable expense per unit$83.30Fixed expense per month$138,720Required: Determine the monthly break-even in either unit or total dollar sales.
What will be an ideal response?
| Per Unit | Percent of Sales | |||||
| Selling price per unit | $ | 170.00 | 100 | % | ||
| Variable expense per unit | 83.30 | 49 | % | |||
| Contribution margin per unit and contribution margin ratio | $ | 86.70 | 51 | % | ||
Dollar sales to break even = Fixed expenses ÷ CM ratio = $138,720 ÷ 0.51 = $272,000
Business
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