[mznailz]

Ronken, inc. Makes and sells a single product. The current selling price is $35 per unit. Variable expenses are $21 per unit, and fixed expenses total $ 148,000 per month.
A. Calculate the monthly break-even point in units.

B. Calculate the monthly break-even in sales dollars.
$35 per unit, Variable $21 per unit, Fixed expenses $148,000 Per year
CMR =(P-V) P= ($35-$21)/$35=4%
Px=F/ (CMR)
Px=$148,000/.4=$370,000

C. Calculate the number of units that must be sold if the firm is to generate an operating income of $36,800.