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iragen [17]
3 years ago
9

Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $23,000 and variable exp

enses 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:
Business
1 answer:
Talja [164]3 years ago
3 0

Answer:

$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

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3 years ago
Josiah was managing a factory in India, and had a decision to make. The factory used child labor, which he disapproved of, but h
Marina CMI [18]

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Hence from the above we can conclude that the given case depicts ethical dilemma.

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