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Wimpy Inc. produces and sells a single product. The selling price of the product is $160.00 per unit and its variable cost is $48.00 per unit. The fixed expense is $399,420 per month. The break-even in monthly dollar sales is closest to ____________.

Answer :

Answer:

$570,600

Explanation:

The formula for calculating break-even is:

Fixed Cost / Contribution per unit

The contribution per unit is calculated as, Sales - Variable cost.

Hence the break-even is,

399420 / 112 = 3566.25,

To get this in monthly dollar sales:

3566.25 * 160 = $570600.

Hope this Helps,

Good Luck.

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