Data concerning Follick Corporation's single product appear below: Selling price per unit $ 310.00 Variable expense per unit $ 77.50 Fixed expense per month $ 167,250 The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $223,000 $278,750 $167,250 $446,000

Break-even point (dollars)= $223,000

Explanation:

Giving the following information:

Selling price per unit $310

Variable expense per unit $77.50

Fixed expense per month $ 167,250

To calculate the break-even point in dollars, we need to use the following formula:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 167,250 / [(310 - 77.5) / 310]

Break-even point (dollars)= 167,250 / 0.75

Break-even point (dollars)= $223,000

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