Answer:
break even sales $.582600
Explanation:
break even is the point where the total cost is equal to total revenue
Total cost = variable cost + fix cost
contribution margin = selling price - vriable cost
after covering varaible we need to cover fix cost for break even point
hence the break even = fix cost/ contribution margin per unt
in order to identify the brek even point we have :
selling price = 200
variable cost = -60
contribution margin = 140 per unit
contribution margin = 140/200 = 0.7 per $
variable cost has been covered now we need to cover fix cost
break even in units = 407820/140 = 2913
break even in $ = 407820/0.7 = 582600
