Cost-Volume Profit Analysis

Recline Company is planning to produce and sell 11,250 units of its only product at a unit price of $106. At this sales level Recline Company will generate $405,000 in total contribution margin and incur fixed costs of $25/unit.

a. Calculate Reclines contribution margin ratio.

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

Answer

%

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.

$Answer