Klinken Corporation's contribution margin ratio on the sale of its most popular product is 52%. The product is priced at
Posted: Mon Apr 25, 2022 7:20 am
Klinken Corporation's contribution margin ratio on the sale of its most popular product is 52%. The product is priced at $94, annual fixed expenses are $870,000. Management is evaluating two options: (1) lowering variable costs by 15% and 2) reducing fixed expenses by 15% Required: Calculate the current level of break-even sales in dollars, as well as the break-even sales for the two options. (Do not round Intermediate calculations. Round your answers to the nearest whole dollar amount.) Break-even sales in dollars Option 1: Break-even sales in dollars Option 2: Break-even sales in dollars S S S 1,422,115 15.634 15.129