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:

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:

Quizplus · Accepted Answer

11eacbfc_c777_b669_8ffe_99caf24ed31b_TB7552_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