Question

Required information Skip to question Information for Pueblo Company follows: Product A Product B Sales Revenue $ 59,000 $ 51,000 Less: Total Variable Cost $ 11,400 $ 31,500 Contribution Margin $ 47,600 $ 19,500 Determine its break-even sales dollars if total fixed costs are $42,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

Answer:

$68,852.46

Explanation:

The computation of the break even sales dollars is shown below:

Product Sales variable cost Contribution

A        $59,000    $11,400         $47,600

B             $51,000      $31,500       $19,500

Total       $110,000                         $67,100

Now the break even sales dollars is

= $42,000 ÷ $67,100 ÷ $110,000

= $42,000 ÷ 0.61

= $68,852.46