Janet Home went to Citizen Bank. She borrowed $7,000 at a rate of 8%. The date of the loan was September 20. Janet hoped to repa
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Answer:
BEP Company 425,000
BEP North 200,000
BEP South 100,000
Explanation:
The formula for bEP (break even point)
<u>Where:</u>
We neeed to calculate the Contribution Margin Ratio before starting with the BEP
North CMR 120,000/400,000 = 0.3
South CMR 120,000/200,000 = 0.6
Company 240,000/600,000 = 0.4
Now we calculate the BEP in dollars
<u>North </u>60,000/0.3 = 200,000
<u>South</u> 60,000/0.6 = 100, 000
<u>Company for the company we add segment fixed cost and the common fixed cost</u>
segment fixed cost 120, 000
common fixed csot 50, 000
total fixed cost 170, 000
170,000/0.4 = 425,000