question archive Given the information below, find the combined break-even point in dollar sales (Hint: Not the individual break-even point)

Given the information below, find the combined break-even point in dollar sales (Hint: Not the individual break-even point)

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Given the information below, find the combined break-even point in dollar sales (Hint: Not the individual break-even point). Explain your answer.

Please show your work and answer.

 

     • Fixed cost $450,000

Menu Items       Revenue%       VC%

A                     0.3               0.5

B                     0.6               0.3

C                     0.1               0.4

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Combined break-even point in dollar sales is computed using the equation given below:

Combined break-even point in dollar sales = Fixed costs / Weighted contribution margin ratio

= $450,000 / 0.63

= $714,285.71

Working note:

Weighted contribution margin is computed as follows:

Formula sheet:

Please see the attached file for the complete solution

 

 

 

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