Calculate break even sales in dollars
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P18-28B (45-60 min)
Req. 1
Blue Red Green Yellow
Sales revenue $705,000 $616,000
Variable costs 152,100 295,680 164,320
Fixed costs 122,000 136,000
Operating income (loss) $12,900 $35,680
Units sold 190,000 10,000
Contribution margin per unit $1.41 $100.10 $13.44
Contribution margin ratio 0.22 0.21
Req. 2
Breakeven sales in dollars - Blue
Breakeven sales in dollars - Red
Breakeven sales in dollars - Green
Breakeven sales in dollars - Yellow
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The solution calculates break even sales in dollars.
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