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$138,720 Required: 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 | % | ||
Unit sales to break even = Fixed expenses ÷ Unit CM = $138,720 ÷ $86.70 per unit = 1,600 units
Dollar sales to break even = Fixed expenses ÷ CM ratio = $138,720 ÷ 0.51 = $272,000
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The two categories of shareholders' equity usually found on the balance sheet of a corporation are
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In a ______________, trade among members is tariff free.
Fill in the blank(s) with the appropriate word(s).
The longer its customers normally hold inventory, the longer the credit period supplier firms normally offer. Still, suppliers have some flexibility in the credit terms they offer. If a supplier lengthens the credit period offered, this will shorten the customer's cash conversion cycle but lengthen the supplier firm's own CCC.
Answer the following statement true (T) or false (F)