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: (Round your intermediate calculations to 2 decimal places.)

Question

Quizplus · Accepted Answer

The break-even point is the point at which total revenue equals total expenses. In this case, the total revenue is $20,000 + $39,000 = $59,000. The total variable expenses are $7,400 + $6,170 = $13,570. The total fixed expenses are $41,160. Therefore, the break-even point is $13,570 + $41,160 = $54,730.

Ingrum Corporation Produces and Sells Two Products