Question

Sheltie Company sells lamps and clocks. Consider the following per unit data: At the break-even point, what is the sales revenue for lamps when fixed costs are $149,952 for Sheltie Company?

Answer 1

$351,450

Step-by-step explanation:

some information was missing, so I looked it up:

lamps clocks

selling price 75 45

variable costs 48 30

contribution margin 27 15

sales mix 3 1

contribution margin per bundle = (3 x $27) + (1 x $15) = $96 per bundle

break even point (in bundles) = $149,952 / $96 = 1,562 bundles which represents 4,686 lamps and 1,562 clocks

sales revenue for lamps at break even point = 4,686 lamps x $75 per lamp = $351,450