Flannigan company manufactures and sells a single product that sells for $450 per unit; variable costs are $270. annual fixed costs are $800,000. current sales volume is $4,200,000. compute the break-even point in dollars.

The break even point in dollars is $2,000,000.

We calculate the break even point (BEP) in dollars as follows:

We calculate Contribution Margin ratio as :

Substituting the Contribution Margin Ratio in the break even point formula we get,

BEP = $2,000,000

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1. c

2. b

3. a

4. c

5. a

6. b

7. c

8. c

9.b

10. d

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