Answered

Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Discover the answers you need from a community of experts ready to help you with their knowledge and experience in various fields. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Newham Corporation produces and sells two products. In the most recent month, Product R10L had sales of $35,000 and variable expenses of $11,180. Product X96N had sales of $48,000 and variable expenses of $17,870. The fixed expenses of the entire company were $46,100. The break-even point for the entire company is closest to:

Sagot :

JeanaShupp

Answer: $ 70923.08

Explanation:

Contribution margin=  Sales - Variable costs

For R10L,

Contribution margin = $ (35,000 -11,180 ) = $ 23,820

For X96N,

Contribution margin = $ (48,000 - 17,870) = $30,130

Total sales = $ (35000+48000) = $ 83000

Total Contribution margin  = $ (23820+30130) = $ 53950

Contribution margin ratio = (Contribution margin) ÷ (Sales)

=  (53950 )÷ (83000)

= 0.65

Overall break- even point = (fixed cost) ÷ ( Contribution margin ratio)

= $ (46100÷ 0.65)

≈ $ 70923.08

Hence, The break-even point for the entire company is closest to $ 70923.08.

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.