Sheridan Company has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Sheridan
Question:
Answers
$16,000,000
Explanation:
Weighted average margin = (Sales mix of goods * Contribution margin) + (Sales mix of gear * Contribution margin)
Weighted average margin = (65%*30%) + (35%*50%)
Weighted average margin = 19.50% + 17.50%
Weighted average margin = 37%
Break-even point = Fixed costs / Weighted average contribution margin ratio
Break-even point = $5,920,000 / 37%
Break-even point = $5,920,000 / 0.37
Break-even point = $16,000,000
So, the break-even point in dollars is $16,000,000.
a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.
so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.
30,000 would be the answer