What is total contribution margin at the break even point


Pringle Company distributes a single product. The company's sales and expenses for a recent month follow:

  • Sales-40(per unit)
  • $628,000

Variable expenses-28 (per unit)

  • 439,600
  • Contribution margin-12(per unit)
  • 188,400

Fixed expenses
148,800
Net operating income
$39,600

1. What is the monthly break even point in units sold AND in sales dollars?
2. What is the total contribution margin at the break even point?

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Accounting Basics: What is total contribution margin at the break even point
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