A company sells two products--J and K. The sales mix is expected to be $3 of sales of Product K for every $1 of sales of Product J. Product J has a contribution margin ratio of 40% whereas Product K has a contribution margin ratio of 50%. Annual fixed expenses are expected to be $120,000. The overall break-even point for the company in dollar sales is expected to be closest to:
A. $252,632
B. $200,000
C. $196,000
D. $263,420
Answer: A
You might also like to view...
Which one of the following actions will decrease the producer's risk?
A) Increase n and keep c constant. B) Decrease n and keep c constant. C) Keep n constant and decrease c. D) Increase n and decrease c.
VRM Cars is a custom car shop that buys and sells modified cars. It also provides customers with the option of adding more features to the models available in the market. In this scenario, VRM Cars deals in _____.
A. intangible goods B. nondurable goods C. complementary goods D. durable goods
Products that assess and report on the potential risks in a system are called:
A) vulnerability management products. B) intrusion detection products. C) URL filtering products. D) firewalls. E) secure socket layering products.
A benefits of franchising includes all but which of the following?
a. System synergies b. Brand name recognition c. Proven business model d. Minimal risk