How do I calculate the break even point in units and sales dollars using absorption costing.
Sales price $16,000 per unit
Fixed cost per unit $2,500 (total fixed $7,500,000 per month)
variable cost per unit = $9,800

denominator volume is 3,000 units
no beginning or ending inventory
Produced 3,200 units in Jan and $2,400 units in February

Im getting a negative number for January, can this be correct?

Thanks.