Hot Locks Company developed the following information for its hair dryer sales:

Sales price                                  $ 125.00 per unit
Variable manufacturing cost        $ 44.75 per unit
Variable selling expense              $ 11.50 per unit
Fixed selling expense                  $ 10,000
Fixed administrative expense      $ 12,000

For the month ended December 31, 2020, Hot Locks Company produced and sold 400 hair dryers.

Required:

a) Calculate the break-even point in units.
b) Calculate break-even point in dollars (round to the nearest dollar
c) What is the contribution margin at the break-even point? 

Answer rating: 100% (QA)

Calculating Hot Locks Companys BreakEven Point a Breakeven point in units We can use the formula Bre... View the full answer