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 Summary
The solution explains how to determine the breakeven point in sales dollars.
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Breakeven units= Fixed Cost/Contribution margin
The weighted ...
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