Respuesta :
The break-even in monthly dollar sales is closest to $585,600. Thus, option A is correct.
What is a variable cost?
Costs that vary according on how much of a product or a service a company manufactures are known as variable costs. The total of pricing across all production volume represents variable costs. They may also be regarded as typical expenses.
Calculate the contribution margin ratio
Contribution margin ratio x (Selling price per unit)÷ 1Variable Selling price
= ($210.00- $67.20) / $210.00
= $142.8 / $210.00
= 0.68
Sales to break even = $ 398,208 / 0.68
= $585,600
Therefore, option A is the correct option.
Learn more about variable costs, here:
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The question is incomplete, the complete question will be:
Wimpy Inc. produces and sells a single product. The selling price of the product is $210.00 per unit and its variable cost is $67.20 per unit. The fixed expense is $398,208 per month. The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice
$585,600
$1,244,400
$846,192
$398,208
