Question
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.
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 $1,275,000Step by Step Solution
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