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MC Question 1
Mabel Co manufactures and sells tables and chairs in a standard mix of one table to four chairs.
The following information is available:
| Product | Table | Chair |
|---|---|---|
| Variable cost per unit ($) | 120 | 16 |
| Contribution sales ratio | 0.4 | 0.6 |
Annual fixed costs are $100,000.
What is the break-even point in sales revenue (to the nearest hundred dollars)?
A. $210,500
B. $178,600
C. $200,000
D. $204,500