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

Question

contestada

Respuesta :

Tundexi Tundexi · Answer 1 · 2021-10-13T12:55:22+02:00

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.

Particulars R38T X08S Total

Sales $20,000 $39,000 $59,000

Variable costs $7,400 $6,170 $13,570

Contribution margin $12,600 $32,830 $45,430

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

brainly.com/question/15221928