Homework Answers
Answer: $ 63,260
Solution:
|
Particular |
product R10L |
Product X96N |
Total |
|
Sales |
$ 43,000 |
$ 56,000 |
$ 99,000 |
|
Less: variable expenses |
$ 11,980 |
$ 14,750 |
$ 26,730 |
|
CONTRIBUTION |
$ 31,020 |
$ 41,250 |
$ 72,270 |
|
Contribution Margin Ratio=Contribution/Sales×100 |
= $ 31,020 / $ 43,000 X100 = 72. 14% |
= $ 41,250 / $ 56,000 X 100 = 73.66% |
= $ 72,270 / $ 99,000 X 100 = 73% |
|
Fixed expenses |
$ 46,180 |
Breakeven point for entire company
= Fixed expenses/ Contribution Margin Ratio
= $ 46,180/ 73%
=$ 63,260
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