Question:
Computing breakeven sales by the contribution margin approach
Trendy Toes, Co., produces sports socks. The company has fixed costs of $95,000 and variable costs of $0.95 per package. Each package sells for $1.90.
Requirements
1. Compute the contribution margin per package and the contribution margin ratio. (Round your answers to two decimal places.)
2. Find the breakeven point in units and in dollars, using the contribution margin approach.