Question

Help Save & Exit Sub 10 Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales
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Answer #1

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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