A product sells for 200 per unit and its variable costs are

A product sells for $200 per unit, and its variable costs are 65% of sales. The fixed costs are $420,000, what is the breakeven point in sales dollars?

Solution

Answer, along with working:

* Hence, Break EVen point in Sales dollars = $ 1,200,000

A	Unit Sale price	$                                   200.00
B	Variable cost %	65.00%
C = 100% - B	CM Ratio	35.00%
D	Fixed Costs	$                           420,000.00
E = D/C	Break Even point in Sales dollars	$                       1,200,000.00
F = E/A (for general understanding)	Break Even point in Units	6000