Answer :
BEP 340 units or $193,800 of sales Income Statement: Sales revenue 340 units x $570( 193,800) , Variable Cost 340 units x $456 (155,040), Contribution (38,760), Fixed cost (38,760), Operating income is 0.
What is the breakeven point calculation formula?
To calculate the break-even point in units, use the formula below: In sales dollars, the break-even point is calculated as follows: Break-Even Point (in Units) = Fixed Costs (Sales Price Per Unit - Variable Cost Per Unit). Break-Even Point = Contribution Margin - Fixed Costs (in sales dollars).
Why is that moniker given to the breakeven point?
The term "break-even point" (BEP) in accounting refers to the situation where a company's revenues and expenses were equal for a specific accounting period. It means the company "broke even," which means there were neither net profits nor losses.
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