21 x y D Prelec CVp Target Profit secure ezto. tpx Slide 5 ompute the break-even

Question

21 x y D Prelec CVp Target Profit secure ezto. tpx Slide 5 ompute the break-even point for a multi-product company and explain the efiects of Shifts ales mix on contribution margin and the break-even point Knowledge Check 1 Use the table to answer the question. Grace Food Company Contribution Income Statement for the Month of October Total Frosted Flakes Amount Percent Amount Percent Amount Percent $2,000,000 les S500.000 100% 2.500,000 100% 800.000 40% -250.000 .50% ,1,050 000 42% Com Flakes Sales Variable expenses Cortbion margin Flxed expenses Net operating income $1,200,000 60% s250,000 50% 1,450,000 870,000 580,000 56% Question 1 of 1 What is the contribution margin ratio for Grace Food Company? 60% 50% 58% 48% Slide 5 ype here to search

Explanation / Answer

CM ratio=Contribution margin/Sales

=$1,450,000/$2,500,000

=58%

So the option is C.58%

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