Break$-$Even Analysis

Feet$-$First Industries plans to sell $7,750$ sleds at $$75$ each in the coming year. Variable cost is $60$ percent of the sales price. Fixed factory overhead equals $$51,290$ and fixed selling and administrative expense equals $$34,780.$

a$.$ Calculate the units that Feet$-$First must sell in order to break even.

Answer

b$.$ Calculate the sales revenue that Feet$-$First must earn to break even by using the contribution margin.

$Answer

c$.$ Confirm your answer in requirement b$,$ by muliplying the number of break$-$even units in requirement a by the unit sales price.

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