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question 15

Multiple Choice

[The following information applies to the questions displayed below.]
Grayson Enterprises manufactures springs and shock absorbers.Springs account for 40% of the company's total sales revenue,whereas shocks account for about 60%.The contribution margin ratios for springs and shocks are 45% and 35%,respectively.Grayson's fixed costs average $450,000 per month.
-Unique Corporation manufactures two products;data are shown below: If Unique's monthly fixed costs average $400,000,what is its break-even point expressed in sales dollars? (Round the answer to the nearest dollar. )

• A)$1,320,462
• B)$1,250,000
• C)$1,400,000
• D)$1,052,632

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Definitions:

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, significantly transforming economies with the introduction of machinery.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often indicated by a rise in real GDP (Gross Domestic Product).

Savings Rate

The fraction of disposable income that is saved instead of spent on various goods and services.

Productivity Rate

A measure of the efficiency of production, often quantified as the ratio of outputs to inputs in a given time period.