Mounts Corporation produces and sells two products. In the most recent month, Pr
ID: 2489449 • Letter: M
Question
Mounts Corporation produces and sells two products. In the most recent month, Product I05L had sales of $42,000 and variable expenses of $11,880. Product P42T had sales of $55,000 and variable expenses of $15,280. The fixed expenses of the entire company were $46,170. The break-even point for the entire company is closest to: (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
A. $73,330
B. $46,170
C. $64,125
D. $64,085
Mounts Corporation produces and sells two products. In the most recent month, Product I05L had sales of $42,000 and variable expenses of $11,880. Product P42T had sales of $55,000 and variable expenses of $15,280. The fixed expenses of the entire company were $46,170. The break-even point for the entire company is closest to: (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
A. $73,330
B. $46,170
C. $64,125
D. $64,085
Explanation / Answer
Answer:C. $64,125
CM ratio=(CM/Sales)*100
=(69840/97000)*100=72%
BEP=Fixed expenses/CM ratio
=$46170/0.72
=$64125
Particulars Product 105L Product P42T Company Sales 42000 55000 97000 Variable expenses 11880 15280 27160 Contribution 30120 39720 69840Related Questions
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