Kim ken Corporation's contribution margin ratio on the sale of its most popular product is 40%. The product is priced at $89, annual fixed expenses are $845,000. Management is evaluating two options: (1) lowering variable costs by 10% and (2) reducing fixed expenses by 10%.

Required:

Calculate the current level of break-even sales in dollars, as well as the break-even sales for the two options. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Break-even sales in dollars

Option 1: Break- even sales in Dollars

Option 2: Break-even sales in Dollars

Answer rating: 100% (QA)

Current Breaken sales in dollars Breakeven Fixed expensescontribu... View the full answer