Wyly Inc. produces and sells a single product. The selling price of the product is $225.00 per unit and its variable cost is $90.00 per unit. The fixed expense is $354,060 per month.

The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

$885,150

$531,090

$590,100

$354,060

Question

Business

Selina Gould

22 May, 08:15

Wyly Inc. produces and sells a single product. The selling price of the product is $225.00 per unit and its variable cost is $90.00 per unit. The fixed expense is $354,060 per month.

The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

$885,150

$531,090

$590,100

$354,060

+5

Answers (1)

Know the Answer?

Izabella Horton · Answer 1

Option (C) is correct.

Explanation:

Contribution per unit:

= selling price - variable cost per unit

= $225 - $90

= $135 per unit

Break-even in (Units):

= fixed expense : Contribution per uni

= 354,060 : 135

= 2622.67

So, Break-even in Sales:

= Break-even units * selling price

= 2622.67 * $225

= $590,100

Therefore, the break-even in monthly dollar sales is closest to $590,100.