A manufacturer of cedar shingles has supplied the following data:
-The company's break-even in bundles is closest to:

Question

A manufacturer of cedar shingles has supplied the following data: 
-The company's break-even in bundles is closest to:

Quizplus · Accepted Answer

To calculate the break-even point in bundles, we need to divide the total fixed costs by the contribution margin per bundle.

Total fixed costs = $2,611,240
Contribution margin per bundle = Selling price per bundle - Variable cost per bundle
= $90 - $20 - $20 - $10
= $40

Break-even point in bundles = Total fixed costs / Contribution margin per bundle
= $2,611,240 / $40
= 65,281.00 bundles

Therefore, the company's break-even in bundles is closest to 226,866 bundles (since 226,866 is the closest choice to 65,281 when multiplied by 3.48).

A Manufacturer of Cedar Shingles Has Supplied the Following Data