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Use the Following Information for Items
Brad Sherwood Corporation  Per-unit data on the two products is presented blow: \text { Per-unit data on the two products is presented blow: }

Question 95

Multiple Choice

Use the following information for items
Brad Sherwood Corporation sells two types of computers; one is designed for audio applications and the other for video applications.Sherwood incurs $300,125 in fixed costs.
 Per-unit data on the two products is presented blow: \text { Per-unit data on the two products is presented blow: }
 Unit data  Audio computer  Video computer Selling price $1,500$1,750 Variable costs 1,1001,200 Contribution margin $400$550 Salses mix 75%25%\begin{array}{llcc} \underline{\text { Unit data } } &\underline{\text { Audio computer } }&\underline{ \text { Video computer }}\\ \text {Selling price } &\$1,500&\$1,750\\ \text { Variable costs } &\underline{1,100}&\underline{1,200}\\ \text { Contribution margin }& \underline{\$400}&\underline{\$550}\\ \text { Salses mix } &75\%&25\%\\\end{array}

-What will be the total contribution margin at the break-even point?


A) $225,000
B) $276,000
C) $300,125
D) $372,250

Correct Answer:

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