Crumbley Inc

question 161

Essay

Crumbley Inc. produces and sells two products. Data concerning those products for the most recent month appear below: Fixed expenses for the entire company were $42,760.
Required:
a. Determine the overall break-even point for the company in total sales dollars. Show your work!
b. If the sales mix shifts toward Product W43J with no change in total sales, what will happen to the break-even point for the company? Explain.

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Definitions:

Sub-subsidiaries

Entities that are controlled by a subsidiary of a parent company, thus being one level below subsidiaries in the ownership hierarchy.

Sequence of Acquisition Dates

Refers to the chronological order in which significant ownership interests in other entities are obtained, impacting the consolidation process and valuation of investments.

Indirect NCI

Represents the portion of equity in a subsidiary not attributable directly to the parent company, often arising in complex group structures.

Tiered Group

A structure of multiple groups or entities arranged in a hierarchy, where control or ownership is exercised through several layers.