Question

Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows: EnlightnerFoglighterSales volume in units 580 480 Unit sales price $300 $400 Unit variable cost 200 240 Unit contribution margin $100 $160 It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $130,000. Demand is high enough for either product to keep the plant operating at maximum capacity. Assuming that sales mix in terms of dollars remains constant, what is the breakeven point in dollars? (Round intermediate calculations to 4 decimal places and final answer up to the nearest whole number.)

Multiple Choice

$352,973.

$414,721.

$226,573

.$1,053,875

.$396,943.

Answer 1

Particulars	Contribution	× units	Weighted
Enlightner	$            100.00	580	$          58,000
Foglighter	$            160.00	480	$          76,800
Total		1,060	$        134,800
Divided by sales			366,000
Weighted avg contribution			36.83%
Fixed costs			130,000.00
Divided by contribution			36.83%
BEP sales units			352,967

Answer is:

352,973