Reference no: EM132791619

Question - Dimne Enterprises manufactures springs and shock absorbers. Springs account for 40% of the company's total sales revenue, whereas shocks account for about 60%. The contribution margin ratios for springs and shocks are 45% and 35%, respectively. Fixed costs average $500,000 per month.

1. Refer to the above information. Dimne's monthly break-even point expressed in sales dollars is:

A) $1,111,111.

B) $1,282,051.

C) $1,301,586.

D) $1,428,571.

2. Refer to the above information. In order to earn an operating income of $182,500, Dimne must generate total sales of approximately:

A) $1,600,000.

B) $1,725,000.

C) $1,750,000.

D) $1,800,000.