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kvv77 [185]
3 years ago
5

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

enses of $7,400. product x08s had sales of $39,000 and variable expenses of $6,170. the fixed expenses of the entire company were $41,160. the break-even point for the entire company is closest to:
SAT
1 answer:
Zigmanuir [339]3 years ago
5 0

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              <u>$7,400   </u>     <u>$6,170   </u>      <u>$13,570</u>

Contribution margin   <u>$12,600 </u>     <u>$32,830</u>     <u>$45,430</u>

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.

See similar solution here

<em>brainly.com/question/15221928</em>

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