Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month...

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Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Product P

Multiple Choice 751 $78.890 $88,932 $46,250 $39130

business accounting

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Answer 1

Answer #1

Solution:

Computation of Overall CM ratio
Particulars	Product 149 V	Product Z50 U	Total
Sales	$33,000.00	$38,000.00	$71,000.00
Variable expenses	$12,100.00	$27,660.00	$39,760.00
Contribution margin	$20,900.00	$10,340.00	$31,240.00
Contribution margin ratio			44.00%

Break even point for entire company = Fixed costs / Overall CM ratio = $39,130 / 44% = $88,932

Hence 2nd option is correct.

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Answer 2

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