Use the following information for the next TWO questions.
The following data relate to Winger Company's two products:
PRODUCT A | PRODUCT B | |
Sales | $240,000 | $160,000 |
Contribution Margin Ratio | 50% | 30% |
Fixed expenses for the company as a whole were $100,000.
A. What would the overall breakeven point for the company be?
B. At the break even point, Product A sales would be:
BE SURE TO PLEASE INCLUDE ALL WORK!
A |
Total Fixed Cost |
$100,000 |
|
B |
Weighted Average CM Ratio |
42% |
[See working] |
C = A/B |
Overall Break even point for company |
$238,095 |
Answer [A] |
D = C x 60% |
Product A Sales would be |
$142,857 |
Answer [b] |
Product A |
Product B |
Total |
||
A |
Sales |
$240,000 |
$160,000 |
$400,000 |
B |
% of total sales |
60% |
40% |
100% |
C |
CM Ratio |
50% |
30% |
|
D = B x C |
Weighted Average CM Ratio |
30% |
12% |
42% |
Use the following information for the next TWO questions. The following data relate to Winger Company's...
Use the following information for the next TWO questions. The following data relate to Winger Company's two products: Sales Contribution margin ratio Product A $240,000 50% Product B $160,000 30% Fixed expenses for the company as a whole were $100,000. 14. The overall breakeven point for the company would be: a. $250,000. b. $125,000 c. $238,095. d. $200,000 15. At the break-even point, Product A sales would be: a. $142,857 b. $150,000. c. $119,048. d. $120,000
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