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# Determine Break-Even Point and Dollar Sales

See the attached file.
1.
Rierson Inc. produces and sells two products. Data concerning those products for the most recent month appear below:
The fixed expenses of the entire company were \$17,730. The break-even point for the entire company is closest to:
a. a. \$32,250
b. b. \$17,730
c. c. \$31,661
d. d. \$15,270

3.

Forest Corporation has prepared the following budgeted data based on a sales forecast of \$3,000,000:

What would be the amount of dollar sales at the break-even point?

a. a. \$1,125,000
b. b. \$2,000,000
c. c. \$2,650,000
d. d. \$1,750,000

4.
Hilty Corporation produces and sells two products. In the most recent month, Product U77D had sales of \$45,000 and variable expenses of \$15,750. Product D86D had sales of \$49,000 and variable expenses of \$22,790. And the fixed expenses of the entire company were \$46,170. The break-even point for the entire company is closest to:

a. a. \$47,830
b. b. \$84,710
c. c. \$46,170
d. d. \$78,254

6.
Riven Corporation has a single product whose selling price is \$10. At an expected sales level of \$1,000,000, the company's variable expenses are \$600,000 and its fixed expenses are \$300,000. The marketing manager has recommended that the selling price be increased by 20%, with an expected decrease of only 10% in unit sales. What would be the company's net operating income if the marketing manager's recommendation is adopted?

a. a. \$132,000
b. b. \$290,000
c. c. \$180,000
d. d. \$240,000

7.
Terres Corporation produces and sells a single product. Data concerning that product appear below:

The break-even in monthly dollar sales is closest to:

a. a. \$889,273
b. b. \$438,000
c. c. \$293,460
d. d. \$540,244.

#### Solution Preview

Solution is attached.

Problem 1

Product T77G Product 129C
Sales, S 14000 19000
Sales % 42.42% 57.58%
Variable Expenses, V 5180 9340
Contribution Margin Ratio 0.6300 0.5084
(S-V)/S
Weighted CMR=42.42%*0.63+57.58%*.5084= 56.00%
Fixed Costs= 17730
Break even point=Fixed Costs/weighetd CMR= 31660.71

Option c is correct.

Problem 3
Variable Fixed
Direct ...

#### Solution Summary

The solution determines the break-even point and dollar sales.

\$2.19