Asked on 20 May 2020

Ed Green Corporation has two divisions; Outdoor Sports and Indoor Sports. The sales mix is 60% for Outdoor Sports and 40% for Indoor Sports. Green incurs $2,420,000 in fixed costs. The contribution margin ratio for the Outdoor Sports Division is 40%, while for the Indoor Sports Division it is 50%.

The Breakeven point in dollars is:

a. $985,600

b. $4,869,565

c. $4,977,777

d. $5,500,000

e. None of the above

 

Answered on 20 May 2020

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