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What is the breakeven point in dollars

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Reference no: EM133175125

Question - Genie Company can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows:

 

Enlightner

Foglighter

Sales volume in units

700

600

Unit sales price

$300

$400

Unit variable cost

200

240

Unit contribution margin

$100

$160

It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $190,000. Demand is high enough for either product to keep the plant operating at maximum capacity.

Assuming that sales mix in terms of dollars remains constant, what is the breakeven point in dollars?

Reference no: EM133175125

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