Una Corporation manufactures two products; data are shown below:
Contribution Margin Ratio | Relative Sales Mix | ||||
Product D | 50% | 40% | |||
Product F | 30% | 60% | |||
If Una's monthly fixed costs average $400,000, what is its break-even point expressed in sales dollars? (Round the answer to the nearest dollar.)
Multiple Choice
$1,320,462
$1,400,000
$1,250,000
$1,052,632
Weighted average contribution margin ratio
= [0.50*0.40] + [0.30*0.60] = 0.38
Breakeven point = Fixed cost/WACM
= 400,000/0.38
= 1,052,632
OPTION D
Una Corporation manufactures two products; data are shown below: Contribution Margin Ratio Relative Sales Mix Product...
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