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Ingrum Corporation produces and sells two products. In the most recent month, Product R38T had sales of $28,500 and variable expenses of $7,940. Product X08S had sales of $49,500 and variable expenses of $31,060. The fixed expenses of the entire company were $34,780. The break-even point for the entire company is closest to:

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Answer: 0.892

Explanation:

Product R38T had sales of $28,500 and variable expenses of $7,940. Contribution margin = $28,500 - $7,940 = $20,560

Product X08S had sales of $49,500 and variable expenses of $31,060.

Contribution margin = $49,500 - $31, 060 = $18,440

Fixed Expenses for the entire company is $34,780

BEP for the company = fixed cost/ cont margin = $34,780/(20,560 + 18,440) = 34,780/39,000 = 0.892

Appx = 0.9

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