1. Lazaro Inc. sells two product lines. The sales mix of the product lines is: Standard, 60%; and Deluxe, 40%. The contribution margin ratio of each line is: Standard, 40%; and Deluxe, 45%. Lazaros fixed costs total $1,575,000.

Instructions

What is the dollar amount of Deluxe sales at the break-even point?

Weighted Average CM.

Standard:

Deluxe:

Weighted-average contribution margin ratio

Break-even point in sales dollars for Deluxe

Dollar amount of Deluxe sales at the break-even point