Chapter 21, Problem 15RQ

To determine

Concept introduction:

Breakeven point: The Breakeven point is level of sales at which the net profit is zero. In other words, the breakeven point is the amount of sales at which there no loss and no profit. The formulas to calculate breakeven point are as follows:

$Breakevenpoint\left(Units\right)=\frac{TotalFixedcosts}{Contributionmarginperunit}$

$Breakevenpoint\left(Dollar\right)=\frac{TotalFixedcosts}{Contributionmarginratio}$

To Explain: Three approaches to calculate the sales to achieve the breakeven point