EXERCISE 6-17 (30 MINUTES)

12,500 pairs × $30 per pair = $375,000 in sales.

Alternative solution:

Fixed expenses

Break-even point= in unit sales Unit contribution margin

$150,000

= = 12,500 pairs

$12.00 per pair

Break-even point= in sales dollars CM ratio

= = $375,000 in sales

0.40