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Homework answers / question archive / Wally's Interior Design sells curtains
Wally's Interior Design sells curtains. The selling price of a set of curtains is $1,132 and the variable (flexible) costs per set of curtains is $447. The Total Fixed Cost for the store are $86,812
What is the breakeven point? (round to whole units, no decimals)
Computation of Break-even Point:
Break-even Point = Fixed Cost / Contribution Margin per set of curtains
Here,
Contribution Margin per set of curtains = Selling Price per Set of Curtains - Variable Cost per Set of Curtains
= $1,132 - $447
Contribution Margin per set of curtains = $685 per set of curtains
Break-even Point = $86,812/$685 = 126.73 or 127 units
