Hitchens 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 $24, 010.The break-even point for the entire company is closest to:

Question

Hitchens 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 $24, 010.The break-even point for the entire company is closest to:

Quizplus · Accepted Answer

To find the break-even point for the entire company, we need to calculate the total contribution margin and divide it by the total fixed expenses.

Total revenue = ($9,700 x 700) + ($4,600 x 1,200) = $11,570,000 
Total variable expenses = ($4,200 x 700) + ($2,490 x 1,200) = $4,428,000 
Total contribution margin = $11,570,000 - $4,428,000 = $7,142,000

Break-even point = $24,010 ÷ ($7,142,000 ÷ $11,570,000) = $33,817

Therefore, the closest break-even point for the entire company is $33,817, which is option A.