Calculate what is break-even in dollars


The management of Leonard's Ltd. is involved in the preliminary analysis of a potential new product. The product will sell for $35 per unit and requires variable costs of $20 per unit. Fixed costs are anticipated to be $30,000 per month. What is break-even in units? What is break-even in dollars? What annual sales volume (in $) is needed to earn $130,000 before taxes? What is the margin of safety ratio, given the information in part 3? How many units must be sold each month to earn an annual after-tax profit of $325,000 given a tax rate of 40%? (Keep in mind you cannot sell partial units)

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Finance Basics: Calculate what is break-even in dollars
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