Question

Madison Corporation sells three products (M, N, and O) in the following mix: 3:1:2. Unit price and cost data are:

M N O
Unit sales price $7 $4 $6
Unit variable costs 3 2 3

Total fixed costs are $340,000. The break-even point in sales dollars for the current sales mix is (round to the nearest thousand):
A.$ 20,000.
B.$289,000.
C.$400,000.
D.$629,000.
E.$740,000.

Answer

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