Sheridan company has two divisions—standard and premium. each division has hundreds of different types of tennis racquets and tennis products. the following information is available: (round answer to 0 decimal places, e. g. 5,275.) standard division premium division total sales $3 $7 $1 variable costs $21 42 contribution margin $9 $28 total fixed costs $3 what is the break-even point in dollars? a. $5.
b. $810811.
c. $1304348.
d. $111000.

Break-even point in dollars is b) 810,811

Explanation:

Break-even point is the amount of sales in a company when there is no lost nor earnings. When the sales cover both fixed costs and variable costs.

It is calculated with the fixed cost divided to the porcentage of contribution margin.

step 1: % of contribution margin

CMg/total sales

($90,000+$280,000)/$1,000,000=0.37 %CMg

Step 2: Break-even point

FC/%CMg

$300,000/0.37=$810,811

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

answer; trojan horse;