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The managerial accountant at Boone Furriers reported the following contribution margin statement information:

Sales Revenue = $850 per unit × number of units sold	Variable Expenses = $205 per unit × number of units sold.	Fixed Expenses = $340,000	Operating Income =$0
Sales price per unit = $850	Variable cost per unit = $645 × units sold	Fixed expenses = $340,000	Operating Income = $0
NA	Variable cost per unit $645 × units sold	NA	Operating Income = Fixed expenses = $645
NA	Units Sold	NA	Fixed Expenses / Variable cost per unit
NA	Sales in Units	NA	X number of units necessary to reach the breakeven point.

Use the data listed above to compute the following:

a. Compute the sales in units.

b. Compute the breakeven point in sales revenue.

A) 1,659 units; $338,900

B) 323 units; $512,000

C) 528 units; $448,800

D) 650 units; $525,000

pur-new-sol

Answer: C

Explanation: C)

Sales per unit: = $850 - $205 = $645; $340,000 / $645 = 527.13 ~ 528 units

Breakeven point: Fixed Expenses = 528 units × $850 = $448,800 is the breakeven point in sales revenue

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