Explore BrainMass

Breakeven point in sales dollars

Perry-A Company sells two products, as follows:

Selling Price Variable Expense

Product per Unit per Unit

AAA-11 $500 $200

BBB-22 120 70

Fixed expenses total $300,000 annually. The expected sales mix in units is 40% for product AAA-11 and 60% for product BBB-22. What is the total dollar amount of sales at break-even for Perry-A?

A) $300,000

B) $420,000

C) $475,000

D) $544,000

Solution Preview

Breakeven units= Fixed Cost/Contribution margin
The weighted ...

Solution Summary

The solution explains how to determine the breakeven point in sales dollars.