A company has fixed costs of $90,000 Its contribution margin ratio is 30 and the product sells for $75 per unit What is the company 's break even point in dollar sales ...

Calculation of BEP Formula BEP Fixed c ...

A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product sells

Question:

A company has fixed costs of $90,000. Its ratio is 30% and the product sells for $75 per unit. What is the company's break-even point in dollar sales?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...