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Fletcher Company Has Three Products with the Following Characteristics Fixed Costs = $30,000 Per Month

Question 88

Multiple Choice

Fletcher Company has three products with the following characteristics:
 Product A  Product B  Product C  Monthly sales in  dollars $60,000$80,000$100,000 Contribution margin  ratio 20%40%16%\begin{array} { | l | r | r | r | } \hline & \text { Product A } & \text { Product B } & \text { Product C } \\\hline \begin{array} { l } \text { Monthly sales in } \\\text { dollars }\end{array} & \$ 60,000 & \$ 80,000 & \$ 100,000 \\\hline \begin{array} { l } \text { Contribution margin } \\\text { ratio }\end{array} & 20 \% & 40 \% & 16 \% \\\hline\end{array} Fixed Costs = $30,000 per month.


-The breakeven point in sales dollars is closest to:


A) $137,500.
B) $40,000.
C) $120,000.
D) $60,000.

Correct Answer:

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