Exercise 310 Compute the BreakEven Point for a Multiproduct

Exercise 3-10 Compute the Break-Even Point for a Multiproduct Company LO3-9) Total S 78,040 S

Solution

1.

2.

Overall contribution margin ratio = Overall contribution margin / Overall sales

Overall contribution margin ratio = $124,800 / $156,000

Overall contribution margin ratio = 80%