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jennifer9983
16.03.2020 •
Business
Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $23,000 and variable expenses of $10,070. Product X96N had sales of $36,000 and variable expenses of $17,660. The fixed expenses of the entire company were $45,980. The break-even point for the entire company is closest to:
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Ответ:
$865.75
Explanation:
The computation of break even point is given below:-
Total sales
= $23,000 + $36,000
= $59,000
Total variable cost
= $10,000 + $17,660
= $27,660
So, contribution margin = Total sales = Total variable cost
= $59,000 - $27,660
= $31,340
Profit volume ratio = (Contribution margin per unit) ÷ (Total sales) × 100
= $31,340 ÷ $59,000 × 100
= 53.11%
Since, the break even point = Fixed cost ÷ profit margin ratio
= $45,980 ÷ 53.11%
= $865.75
Ответ:
I think that the answer to this question should be based upon your opinion sorry if you were expecting the actual answer