Use the following information to determine the break-even point in sales dollars: Unit sales 50,000
Units Dollar sales $500,000
Fixed costs $204,000
Variable costs $187,500
a. $500,000.
b. $173,600.
c. $108,500.
d. $88,500.
e. $326,400.

Break-even point (dollars)= $362,400

Explanation:

Giving the following information:

Unit sales 50,000

Units Dollar sales $500,000

Fixed costs $204,000

Variable costs $187,500

First, we need to calculate the contribution margin ratio:

Contribution margin ratio= total CM / Sales

Contribution margin ratio= (500,000 - 187,500) / 500,000

Contribution margin ratio= 0.625

Now, the break-even point in sales dollars:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 204,000 / 0.625

Break-even point (dollars)= $362,400

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23