Cost-Volume Profit Analysis

Recline Company is planning to produce and sell 10,000 units of its only product at a unit price of $100.At this sales level Recline Company will generate $330,000 in total contribution marginand incur fixed costs of $25/unit.

a.Calculate Recline's contribution margin ratio.

Round answer to the nearest whole percentage (ex: 0.3456 = 35%)

b.Calculate the break-even point in sales dollars for Recline.

Use your rounded answer from part a. above and then round final answer to the nearest dollar.