EXERCISE 6-17 (30 MINUTES)

13,333 pairs × $30.00 per pair = $400,000 in sales

Alternative solution:

Fixed expenses

Break-even point= in unit sales CM per unit

$150,000

= = 13,333 pairs

$11.25 per pair

Break-even point= in sales dollars CM ratio

= = $400,000 in sales

0.375