The Following Monthly Data Are Available for the Phelps Company

question 13

Multiple Choice

The following monthly data are available for the Phelps Company:
$\begin{array}{|l|r|r|r|r|}\hline & \text { Product A } & \text { Product B } & \text { Product C } & \text { Total } \\\hline \text { Sales } & \$ 150,000 & \$ 130,000 & \$ 90,000 & \$ 370,000 \\\hline \text { Variable } & 91,000& 104,000 & 27,000 & 222,000 \\\text { expenses } & & & & \\\hline \text { Contribution } & \$ 59,000 & \$ 26,000 & \$ 63,000 & 148,000 \\\text { margin } & & & & \\\hline \text { Fixed expenses } & & & & 55,000 \\\hline & & & & \$ 93,000 \\\hline\end{array}$
What are the break-even sales for the month for the company?

• A) $91,667.
• B) $203,000.
• C) $148,000.
• D) $137,500.

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Definitions:

Borrowed

The state of having taken something on loan, often with the obligation to return it or repay an equivalent amount.

Annual Rate

The interest rate for a whole year, as opposed to just a monthly or daily rate.

Days

A unit of time equivalent to 24 hours, often used to measure durations or intervals.

Grow

To grow or expand in size, volume, or intensity as time progresses.