Acompany sells children’s sleds for $70 each. the firm has variable costs per unit of $35 and total fixed costs of $120,000. what is the company’s break-even point in sales dollars? *

$240,030

Explanation:

break-even point formula in units = total fixed costs / contribution margin

break even point in units = $120,000 / $35 = 3,428.5 ≈ 3,429 units (we must round up)

to calculate break even point in sales dollars we multiply the break even point units by the selling price per unit = 3,429 units x $70 = $240,030

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c is the correct answer.