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ingrum corporation produces and sells two products. in the most recent month, product r38t had sales of $20,000 and variable exp

Zigmanuir [339]

The break-even point is closest to $50,846.

Let understand that the break-even point refers to the point where the total revenue equals the total costs.

Below are steps to help us derive the break-even point.

Particulars R38T X08S Total

Sales $20,000 $39,000 $59,000

Variable costs $7,400 $6,170 $13,570

Contribution margin $12,600 $32,830 $45,430

Total Contribution margin ratio = Total Contribution / Total Sales

Total Contribution margin ratio = $33,150 / $51,000

Total Contribution margin ratio = 0.65

Total Contribution margin ratio = 65%

Break even point = Fixed costs / Contribution margin ratio

Break even point = $33,050 / 0.65

Break even point = $50,846

In conclusion, the break-even point for the entire company is closest to $50,846.

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