2) Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sal

Question

2) Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $3,330,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%.

Reference: Ref 6-2

The break-even point in dollars is

Answer

A. $8,325,000.

B. $9,000,000.

C. $7,744,186.

D. $1,232,100..

Answer

A 300,000

B 450,000

C 675,000

D 495,000

Richert Company's activity for the first three months of 2011 are as follows:

Explanation / Answer

How much sales are required to earn a target income of $120,000 if total fixed costs are $150,000 and the contribution margin ratio is 40 A) B 450,000 A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $150,000. The number of units the company must sell to break even is Break-even point = fixed cost/ contribution margin per unit = 150,000 / (5 – 3) = 75,000 units C) 75,000 Units

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