Answer:
Break even point in dollars = $72,530.86
Explanation:
As we know, break even point is defined as that level of sales whether in units or in dollars where the company is able to meet all the cost and do not have any profit. that is, a no profit no loss situation:
In financial terms it is calculated as follows:
Break even point in dollars = [tex]\frac{Fixed \: Cost}{Contribution\: Margin}[/tex]
Here, we are provided that
Fixed Cost = $23,500
Contribution Margin = 32.4%
Break even point in dollars = [tex]\frac{23,500}{0.324}[/tex]
= $72,530.86
