Dietrick Corporation produces and sells two products. Data concerning those products for the most recent month appear below: Fixed expenses for the entire company were $42,550.
The break-even point for the entire company is closest to: (Round your intermediate calculations to 2 decimal places.)

Question

Dietrick Corporation produces and sells two products. Data concerning those products for the most recent month appear below:  Fixed expenses for the entire company were $42,550.
The break-even point for the entire company is closest to: (Round your intermediate calculations to 2 decimal places.)

Quizplus · Accepted Answer

11eacbfc_c789_4312_8ffe_d746edde61ea_TB7552_00 CM ratio = Contribution margin ÷ Sales revenue = $44,530 ÷ $73,000 = 0.61
Dollar sales to break even = Fixed expenses ÷ CM ratio = $42,550 ÷ 0.61 = $69,754

Dietrick Corporation Produces and Sells Two Products