Answer:
$14,200,000
Explanation:
The computation of the firm break even point in total sales dollars is shown below:
Particulars Youth Adult Recreational
Sales mix
ratio 0.25 0.45 0.30
(5:9:6)
Contribution
margin $200 $372 $560
Weighted
average CM 50 167.4 168
Selling price $500 $930 $1,400
Weighted
average sales 125 418.50 420
Weighted average
sales 963.50
Weighted average
CM 385.40
CM ratio 40% (385.40 ÷ 963.50)
Now the break even point in sales dollars is
= Fixed cost ÷ contribution margin ratio
= $5,680,000 ÷ 40%
= $14,200,000