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Blast Company sells three products. Contribution margin income statements for the three products follow:                         &nbsp

Blast Company sells three products. Contribution margin income statements for the three products follow:

                                                Product A        Product B        Product C        Total

            Sales                            $100,000         $80,000           $40,000           $220,000

            Variable expenses         55,000           64,000              12,000             131,000

            Contribution margin      45,000           16,000             28,000               89,000

            Fixed expenses    $ 76,540

            Income before taxes $ 12,460

The breakeven sales for the month for the company are closest to

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Expert Solution

Contribution margin Ratio = Combined Contribution/ Combined Sales *100
                                                     =$89,000/220,000*100
                                                    = 40.4545%
break-even sales = Fixed cost/Contribution margin Ratio
                                      =$ 76,540/40.4545%
                                      = $189,200.

ekkarill92 answered 2 years ago
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