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2 years ago

Dietrick Corporation produces and sells two products. Data concerning those products for the most recent month appear below:

Business

1 answer:

mrs_skeptik [129]2 years ago

3 0

Answer:

b. $69,754

Explanation:

contribution = sales - variable cost

for Product B32L:

contribution = sales - variable cost

= 46,000 - 13800

= $32,200

for Product K84B:

contribution = sales - variable cost

= 27,000 - 14,670

= $12,330

total sales of the company = 46,000 + 27,000

= $73,000

total contribution of the company = $32,200 + $12,330

= $44,530

cotribution margin ratio = contribution/sales

= 44530/73000

= 0.61

break even point = fixed cost/cotribution margin ratio

= 42550/0.61

= $69,754

Therefore, The The break-even point for the entire company is closest to $69,754.

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