Answer:
Break Even Sales Volume in Dollars= $ 179792.43≅$ 180,000
Contribution Margin $ 182,000
Explanation:
Break Even Sales Volume in Dollars= Fixed Costs/ Contribution Margin Ratio
Break Even Sales Volume in Dollars= Fixed Costs/ 1- (variable Costs/ Sales)
Break Even Sales Volume in Units = Fixed Costs/ Contribution Margin per Unit
Break Even Sales Volume in Dollars = $58,900/1-( $388,000/$570,000)
Break Even Sales Volume in Dollars = $58,900/1-( 0.6744)
Break Even Sales Volume in Dollars = $58,900/0.3276
Break Even Sales Volume in Dollars = $ 179792.4298= $ 179792.43≅
$ 180,000
Sales $570,000
Less Total variable cost $388,000
Contribution Margin $ 182,000
Less Total fixed cost $58,900
Net Profit $ 123,100
