Wimpy Inc. produces and sells a single product. The selling price of the product is $230.00 per unit and its variable cost is $78.20 per unit. The fixed expense is $390,456 per month. The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

The monthly break-even dollar sales is closest to $591,599.1 0

Explanation:

Break-even is derived fixed costs divided by contribution per unit

Fixed cost is $390,456

Contribution per unit =selling price per unit -variable cost per unit

selling price is $230 per unit

variable cost per unit is $78.20

Contribution per unit=$230-$78.20

Contribution per unit =$151.8 0

Break-even point in units=$390,456/$151.80

                                         =2572.17 units

The break-even in monthly dollar sales=2572.17*$230

                                                                 =$591,599.1 0

Break-even sales is the sales amount at which the company records neither gain nor losses,hence the company is only able to cover all costs incurred with no extra value in terms of retained earnings added to shareholders' investment let alone being able to distribute dividends from the same period retained earnings

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