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31 August, 15:38

Wyly Inc. produces and sells a single product. The selling price of the product is $225.00 per unit and its variable cost is $90.00 per unit. The fixed expense is $354,060 per month.

The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

$885,150

$531,090

$590,100

$354,060

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Answers (1)
  1. 31 August, 18:33
    0
    Option (C) is correct.

    Explanation:

    Contribution per unit:

    = selling price - variable cost per unit

    = $225 - $90

    = $135 per unit

    Break-even in (Units):

    = fixed expense : Contribution per uni

    = 354,060 : 135

    = 2622.67

    So, Break-even in Sales:

    = Break-even units * selling price

    = 2622.67 * $225

    = $590,100

    Therefore, the break-even in monthly dollar sales is closest to $590,100.
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