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Question - A company sells two products--J and K. The sales mix is expected to be $3 of sales of Product K for every $1 of sales of Product J. Product J has a contribution margin ratio of 40% whereas Product K has a contribution margin ratio of 50%. Annual fixed expenses are expected to be $118,750.
Required -
a- What the overall break-even point for the company in dollar sales?
b- What the break-even point for each product?
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