Question

Mcdale Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Product Product I49V Z50U Sales $ 28,000 $ 33,000 Variable expenses $ 11,600 $ 23,170 The fixed expenses of the entire company were $39,180. The break-even point for the entlre company is closest to:

Answer 1

Here answer is $91116

Calculated as

combined sale = $28000+$33000= $61000

Combined Variable expense = $11600+$23170 = $34770

Combined contribution margin = Sale - Variable expenses = $61000-$34770 = $26230

Contribution margin % = $26230/$61000 = 0.43 or 43%

Break even point = Fixed cost/ Contribution margin = $39180/43% = $91116.27

Hence Answer is $91116

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