Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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%. Lazaro's 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 =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Marketing Research

Authors: David A. Aaker, V. Kumar , George S. Day

8th Edition

047123057X, 9780471230571

More Books

Students also viewed these Accounting questions