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Wyly Inc. produces and sells a single product?
a.The selling price of the product is $170.00 per unit and its variable cost is $62.90 per unit.
b.The fixed expense is $356,643 per month.
c.The break-even in monthly dollar sales is closest to:

Answer :

Answer:

The break even point in monthly dollar sales is closest to: $566,100 (or 3,330 units at a price of $170)

Explanation:

Hi, first let´s introduce the break-even point equation:

[tex]BEP(units)=\frac{Fixed Expenses}{Price-VariableCost} =[Units][/tex]

[tex]BEP(Dollars)=BEP(Units)*Price[/tex]

Therefore, let´s find the BEP in units first

[tex]BEP(units)=\frac{356,643}{170-62.90} =3,330[/tex]

So, the break even point in units is 3,330, let´s find the BEP($)

[tex]BEP(Dollars)=3,330*170=566,100[/tex]

The break-even in monthly dollar sales is $566,100

Best of luck.

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