X Company is starting a new merchandising business and provides the following budgets for its two...

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X Company is starting a new merchandising business and provides the following budgets for its two products: Product Revenue $

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Answer 1

Answer #1

Break even sales is $606,210.20
Statement showing Computations
Particulars	Product A	Product B	Total
Revenue	472,352.00	267,995.00	740,347.00
Contribution Margin	229,216.00	45,570.00	274,786.00
Weighted CM Ratio			37.1158%
Sales Mix	63.80%	36.20%
	Total
Fixed costs	225,000.00
Sales to break even =225,000/37.1158%	606,210.20

Proof:	Product A	Product B	Total
Break even sales A = 606,210.2063.80% B = 606,210.2036.20%	386,770.80	219,439.40	606,210.20
Contribution= 606,210.20*37.1158%			224,999.76

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Answer 2

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