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koban [17]
4 years ago
10

The following data are available for the Phelps Corporation for a recent month: Product A Product B Product C Total Sales $ 150,

000 $ 130,000 $ 90,000 $ 370,000 Variable expenses 91,000 104,000 27,000 222,000 Contribution margin $ 59,000 $ 26,000 $ 63,000 148,000 Fixed expenses 55,000 Net operating income $ 93,000 The break-even sales for the month for the company is closest to:
Business
1 answer:
mrs_skeptik [129]4 years ago
5 0

Answer:

$277,000

Explanation:

Break even is the point where neither profit nor a loss is made by the company.

<u>Determination of Break-even Sales</u>

Sales - Variable Expenses - Fixed Expenses = 0

Therefore, Solving Algebraically

Sales = Variable Expenses + Fixed Expenses

         = 222,000 + 55,000

         = 277,000

Therefore Break-even sales for the month for the company is closest to $277,000

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