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    Breakeven point in sales dollars

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    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

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    Solution Preview

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

    Solution Summary

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