Data concerning Follick Corporation's single product appear below:

Selling price per unit	$ 330.00
Variable expense per unit	$ 75.90
Fixed expense per month	$ 173,250
The break-even in monthly dollar sales is closest to:

To calculate the break-even point in dollar sales, we can use the following formula:

\[
\text{Break-even Sales in Dollars} = \frac{\text{Fixed Expenses}}{\text{Contribution Margin Ratio}}
\]

### Step 1: Calculate the Contribution Margin per unit
\[
\text{Contribution Margin per unit} = \text{Selling Price per unit} - \text{Variable Expense per unit}
\]
\[
= 330.00 - 75.90 = 254.10
\]

### Step 2: Calculate the Contribution Margin Ratio
\[
\text{Contribution Margin Ratio} = \frac{\text{Contribution Margin per unit}}{\text{Selling Price per unit}}
\]
\[
= \frac{254.10}{330.00} = 0.77 \, \text{(rounded to 2 decimal places)}
\]

### Step 3: Calculate the Break-even Sales in Dollars
\[
\text{Break-even Sales in Dollars} = \frac{173,250}{0.77} = 225,000
\]

Therefore, the break-even point in monthly dollar sales is **$225,000**.

Would you like further details or have any questions?

Here are 5 related questions:
1. How would a change in the selling price affect the break-even point?
2. What would happen to the break-even point if fixed expenses increased?
3. Can the break-even point be calculated in units instead of dollars?
4. How does the contribution margin affect profit above the break-even point?
5. How could Follick Corporation reduce its break-even point?

**Tip**: Always monitor both fixed and variable costs, as they directly influence the break-even point!

Data concerning Follick Corporation's single product appear below:

Selling price per unit $330.00
Variable expense per unit $75.90
Fixed expense per month $173,250
The break-even in monthly dollar sales is closest to:

Calculate the break-even point for Follick Corporation's single product using the selling price of $330.00, variable expense of $75.90, and fixed expenses of $173,250. This guide explains break-even analysis, contribution margin, and financial ratios with detailed steps. Suitable for business finance students.

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