Mcdale Inc.produces and sells two products.Data concerning those products for the most recent month appear below:
The fixed expenses of the entire company were $18,460.The break-even point for the entire company is closest to:
A) $23,367
B) $10,540
C) $24,550
D) $18,460

Question

Mcdale Inc.produces and sells two products.Data concerning those products for the most recent month appear below:
 The fixed expenses of the entire company were $18,460.The break-even point for the entire company is closest to:
A) $23,367 
B) $10,540 
C) $24,550 
D) $18,460

Quizplus · Accepted Answer

11ea7761_1865_f6f6_81a5_1fbeafb2ed17_TB2580_00 CM ratio = Contribution margin ÷ Sales = $22,910 ÷ $29,000 = 0.79
Dollar sales to break even = Fixed expenses ÷ CM ratio = $18,460 ÷ 0.79 = $23,367