The following data pertain to last month's operations:

Selling price	$      35	per unit
Variable production cost	$      19	per unit
Fixed production cost	$78,000
Variable selling & admin. expenses	$        9	per unit
Fixed selling & admin. expenses	$37,000

The break-even point in dollars is: (Do not round intermediate calculations.)

	$193,000
	$156,000
	$253,000
→	$575,000

Unit contribution margin = Selling price per unit − Variable expenses per unit

= $35 per unit − ($19 per unit + $9 per unit) = $7 per unit

CM ratio = Unit contribution margin ÷ Unit selling price

= ($35 per unit − $28 per unit) ÷ $35 per unit

= $7 per unit ÷ $35 per unit = 0.20

Dollar sales to break even = Fixed expenses ÷ CM ratio

= ($78,000 + $37,000) ÷ 0.20

= $115,000 ÷ 0.20

= $575,000