Stupa Corporation manufactures two products; data are shown below: Contribution Margin Ratio Relative Sales Mix Product...
Stupa Corporation manufactures two products; data are shown below:
| Contribution Margin Ratio | Relative Sales Mix | ||||
| Product D | 50% | 60% | |||
| Product F | 60% | 40% | |||
If Stupa's monthly fixed costs average $200,000, what is its break-even point expressed in sales dollars? (Round the answer to the nearest dollar.)
Multiple Choice
-
$152,632
-
$250,000
-
$370,370
-
$320,000
Homework Answers
Weighted average contribution margin=Respective contribution margin*Respective sales mix
=(0.5*0.6)+(0.6*0.4)=0.54
Breakeven=Fixed expenses/Contribution margin ratio
=(200,000/0.54)
=$370370(Approx).
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