Answer:
The break-even sales revenue for each company is $82,074 and $240,100 respectively
Explanation:
The computation of the break even point in dollars is shown below
Break even point = (Fixed expenses) ÷ (Profit volume Ratio)
where,
And, Profit volume ratio = (Contribution margin) ÷ (selling price) × 100
So, for Remo Co. would equal to
= ($131,000) ÷ ($430,000) × 100 = 30.46%
And, for Angela Inc would equal to
= ($240,000) ÷ ($430,000) × 100 = 55.81%
And, the fixed expenses is $25,000 and $134,000
Now put these values to the above formula
So, the value would equal to
= (25,000) ÷ (30.46%)
= $82,074
And, for Angela Inc, it would be
= (134,000) ÷ (55.81%)
= $240,100
