Question

Required information Skip to question Information for Pueblo Company follows: Product A Product B Sales Revenue $ 59,000 $ 51,000 Less: Total Variable Cost $ 11,400 $ 31,500 Contribution Margin $ 47,600 $ 19,500 Determine its break-even sales dollars if total fixed costs are $42,000. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

$68,852.46

Step-by-step explanation:

The computation of the break even sales dollars is shown below:

Product Sales variable cost Contribution

A $59,000 $11,400 $47,600

B $51,000 $31,500 $19,500

Total $110,000 $67,100

Now the break even sales dollars is

= $42,000 ÷ $67,100 ÷ $110,000

= $42,000 ÷ 0.61

= $68,852.46