Gilpatric Corporation Produces and Sells Two Products

question 133

Multiple Choice

Gilpatric Corporation produces and sells two products. In the most recent month, Product Q71M had sales of $28,000 and variable expenses of $7,840. Product V04P had sales of $49,000 and variable expenses of $27,580. The fixed expenses of the entire company were $34,630. The break-even point for the entire company is closest to:

• A)$70,050
• B)$64,130
• C)$34,630
• D)$42,370

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Definitions:

Goodwill

An intangible asset representing the excess value of a purchased company over the fair market value of its identifiable tangible and intangible assets.

Consideration Transferred

The total value of all assets, liabilities, and equity interests given to acquire control of an entity.

Consolidated Revenues

The total revenue generated by a corporation and its subsidiaries, reported as one amount in the consolidated financial statements.