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Closser Corporation produces and sells two products. In the most recent month, Product M50S had sales...

Closser Corporation produces and sells two products. In the most recent month, Product M50S had sales of $34,000 and variable expenses of $11,080. Product H50G had sales of $47,000 and variable expenses of $18,080. The fixed expenses of the entire company were $46,090. The break-even point for the entire company is closest to:
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Answer #1

Calculate break even point entire company

Particular M50S H5 total
Sales $34000 $47000 $81000
(-) variable expenses ($11080) ($18080) ($29160)
Contribution $22920 $28920 51840

Break even point in dollars = fixed expenses/contribution margin ratio

Contribution margin ratio = contribution margin/sales×100

= $51840/81000×100 = 64%

Break even point in dollars = $46090/64% = $72015.62

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