Penury Company offers two products. At present, the following represents the usual results of a month's operations:
|
|
Product K
|
Product L
|
|
|
|
Amount
|
Per Unit
|
Amount
|
Per Unit
|
Combined Amount
|
|
Sales revenue
|
$120,000
|
$1.20
|
$80,000
|
$0.80
|
$200,000
|
|
Variable expenses
|
60,000
|
0.60
|
60,000
|
0.60
|
120,000
|
|
Contribution margin
|
$60,000
|
$0.60
|
$20,000
|
$0.20
|
80,000
|
|
Fixed expenses
|
|
|
|
|
50,000
|
|
Net operating income
|
|
|
|
|
$30,000
|
Find the break-even point in terms of dollars.