Compute the break-even point in sales dollars if fixed costs are $200,000 and the total contribution margin is 10% of revenue.

Show the analysis in a table format and provide an interpretation of the information presented in the table.

Danny Company makes and sells stuffed animals. One product, Panda Bear, sells for $28 per bear. Panda Bears incur fixed costs of $120,000 per month and a variable cost of $12 per bear. How many Panda Bears must be produced and sold each month to break even?

Show the analysis in a table format provide an interpretation of the information presented in the table.

Jerry is considering buying a company if it will break even or earn net income on revenues of $100,000 per month. The company that Jerry is considering sells each unit it produces for $5. Use the following cost data to compute the variable cost per unit and the fixed cost for the period. Calculate the break-even point in sales dollars. Should Jerry purchase this company?

Volume (units) Total Cost

8,000 $70,0006

8,000. $190,000