To calculate the break-even sales units, we can use the formula:
Break-even sales units = Total fixed costs / (Unit selling price - Variable cost per unit)
Break-even sales units = $264,000 / ($580 - $340)
Break-even sales units = $264,000 / $240
Break-even sales units = 1,100 units
To calculate the break-even sales dollars, we can multiply the break-even sales units by the unit selling price:
Break-even sales dollars = Break-even sales units * Unit selling price
Break-even sales dollars = 1,100 units * $580
Break-even sales dollars = $638,000
Ivanhoe, Inc, has a unit selling price of $580, variable cost per unit of $340, and total fixed costs of $264,000. Compute the break-even salesunits and sales dollars. Break-even point (in units) units Break-even point (in dollar)
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