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Yokan Company manufactures two products: Product A and Product B. A contribution format income statement related to a recent month for the two products is

Yokan Company manufactures two products: Product A and Product B. A contribution format income statement related to a recent month for the two products is given below.

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3. What is the overall contribution margin ratio? *

4 points

30%

35%

65%

70%

None of the above

4. What is the overall break-even point for the company in sales dollars? *

4 points

$1,200,000

$1,275,000

$2,600,000

$4,000,000

None of the above

5. What is the amount of relative sales dollars for product B at the break-even point? *

4 points

$1,400,000

$2,600,000

$2,887,500

$4,000,000

None of the above

6. What is the amount of total contribution margin at the break-even point? *

4 points

$1,200,000

$1,275,000

$2,475,000

$4,000,000

None of the above

7. What is the amount of total variable expenses for the two products at the break-even point? *

4 points

$1,200,000

$2,800,000

$4,042,500

$5,775,000

None of the above

Product A Total Sales $5,362,500 4,042,500 Product B $2,887,500 1,732,500 $8,250,000 5,775,000 2,475,000 $1,320,000 $1,155,000 Variable Expenses Contribution Margin Fixed Expenses Net Operating Income 1,200,000 $1,275,000

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