[The Following Information Applies to the Questions Displayed Below

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:

Labor

The human effort, including physical and mental capabilities, used to produce goods or services.

CIO

The Congress of Industrial Organizations, a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 to 1955.

Collective Bargaining

The process whereby labor unions and employers negotiate wages, hours, and working conditions on behalf of the employees.

Strikes

Work stoppages initiated by employees as a form of protest, typically to demand better working conditions, wages, or benefits from their employer.