Question

Product X Product Y Sales in dollars $80,000 $120,0000 Contribution margin ratio 60% 50% If fixed expenses for the company as a whole are $112,000 and the product mix is constant, what would be the overall break-even point in sales dollar for the company? (make a rounding to the пеагest) a) b) c) d) e) S200,000. $150,000. $100,000. S153,846. None of the above Lnouts ara C25.000.

Answer 1

Ans.	Option   A    $200,000
		Product X	Product Y	Total
	Sales in dollars	$120,000	$80,000	$200,000
	Contribution margin ratio	60%	50%
	Contribution margin (a*b)	$72,000	$40,000	$112,000
	Weighted average contribution margin ratio = Total contribution margin / Total sales * 100
			$112,000 / $200,000 * 100
			56%
	Break even point in sales dollar   =   Total fixed cost/ Weighted average contribution margin ratio
			$112,000 / 56%
			$200,000