Closser Corporation Produces and Sells Two Products

question 162

Multiple Choice

Closser Corporation produces and sells two products. In the most recent month, Product M50S had sales of $39,000 and variable expenses of $12,870. Product H50G had sales of $12,000 and variable expenses of $4,980. The fixed expenses of the entire company were $33,050. The break-even point for the entire company is closest to:

• A)$50,846
• B)$50,900
• C)$17,950
• D)$33,050

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Definitions:

Specific Financing

Financing that is intended for a particular purpose or project, with clear specifications and usually backed by specific collateral.

After-Tax Cost

The expense of any financial obligation or investment after accounting for the effects of taxes.

Project Evaluation

The process of determining the potential successes or failures of a proposed project based on various criteria.

DCF Approach

A valuation method that estimates the value of an investment based on its expected future cash flows, adjusted for the time value of money.