contestada

Dietrick Corporation produces and sells two products. Data concerning those products for the most recent month appear below:


Product B32L Product K84B Sales $ 46,000 $ 27,000 Variable expenses $ 13,800 $ 14,670 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.)

a. $30,450

b. $69,754

c. $71,020

d. $42,550

Respuesta :

Karabo99

Answer:

b. $69,754  

b. $69,754  

b. $69,754  

b. $69,754  

b. $69,754  

b. $69,754  

b. $69,754  

b. $69,754

Explanation:

contribution = sales - variable cost

for Product B32L:

contribution = sales - variable cost

                     = 46,000 - 13800

                     = $32,200

for Product K84B:

contribution = sales - variable cost

                     = 27,000 - 14,670

                     = $12,330

total sales of the company = 46,000 + 27,000

                                             = $73,000

total contribution of the company = $32,200 + $12,330

                                                         = $44,530

cotribution margin ratio = contribution/sales

                                        = 44530/73000

                                        = 0.61

break even point  = fixed cost/cotribution margin ratio

                              = 42550/0.61

                              = $69,754

Therefore, The The break-even point for the entire company is closest to $69,754.