Question

Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $22,000 and variable expenses of $10,060. Product X96N had sales of $35,000 and variable expenses of $17,300. The fixed expenses of the entire company were $45,970. The break-even point for the entire company is closest to:

Answer 1

Answer:

BEP $88,403.85

Explanation:

R10L22,000 - 10,060 = 11,940

X96N 35,000 - 17,000 = 17,700

57,000              29,640

Contribution Mix  total contribution / total sales

29,640/57,000 = 0.52

$\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

45,970/0.52 = $88,403.84