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Madlem, Inc: Monthly break-even in unit and dollar sales

Madlem, Inc, produces and sells a single product whose selling price is $240.00 per unit and whose variable expense is $86.40 per unit. The company's fixed expense is $720,384 per month.

Required:

Determine the monthly break-even in either unit or total dollar sales. Show all work.

Solution Preview

Contribution margin before fixed overhead
Selling price $240.00
Less: variable cost (86.40)
Contribution margin per unit $153.60

To determine ...

Solution Summary

The cited solution shows the detailed calculations to determine break even in unit and dollar sales.

$2.19