Blues Corporation produces and sells a single product whose selling price is $240.00 per unit and whose variable cost is $86.40 per unit. The company's fixed cost is $720,384 per month. ( Required: Determine the monthly break-even point in both units and dollar sales.

	Per Unit	Percent of Sales
Selling price per unit	$240.00	100%
Variable cost per unit	86.40	36%
Contribution margin per unit and contribution margin ratio	$153.60	64%

Answer:

Unit sales to break even = Fixed costs Unit CM

Dollar sales to break even = Fixed costs CM ratio