Answer:
Break-even point (dollars)= $223,000
Explanation:
Giving the following information:
Selling price per unit $310
Variable expense per unit $77.50
Fixed expense per month $ 167,250
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 167,250 / [(310 - 77.5) / 310]
Break-even point (dollars)= 167,250 / 0.75
Break-even point (dollars)= $223,000