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Organic Apples Inc. grows and sells two varieties of applies: Gala and Honey Crisp. A contribution format income statement for a recent month for
Organic Apples Inc. grows and sells two varieties of applies: Gala and Honey Crisp. A contribution format income statement for a recent month for the two fruits appears below: Gala Honey Crisp Total Sales $125,000 $75,000 $200,000 Variable expenses 50,000 45,000 95,000 Contribution margin $75,000 $30,000 $105,000 Fixed expenses 35,000 Net operating income $ 70,000 Required: a. What is the overall contribution margin ratio for the company? b. What is the company's overall break-even point in dollar sales?
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