Please see if my answer is correct - Thank you in advance - Jessica

Expected Unit Sales : 1020

Selling Price : 120

Per Unit : 16.90

Variable Cost : 2.60

Fixed Costs : 17238

Question a) Calculate the break-even point in Units and in Dollars

Formula for BEP in Units:

Selling Price (Units - Variable Cost) = Total Fixed Costs

120 (16.90 - 2.60) = 120 x 14.30 = 1760

BEP in units = Fixed Costs/Contributions per unit

BEP in Units = $17238 - 1760 / 120 - 2.60

BEP in Units = $15478 / 117.40

BEP in Units = 131.84 or 132

And

Formula for BEP in Dollars

Units X Selling Price

BEP in dollars = 132 Units x 120

BEP in Dollars = $15840