Sandhill Bottle Shop has two divisions, Wine and Beer. The sales mix is 70% Wine and 30% Beer. Sandhill’s annual fixed costs are estimated at $342000. The average selling price in the Wine division is $45 with a variable cost of $18. The average selling price in the Beer division is $18 with a variable cost of $9. What is Sandhill’s sales revenue at the break-even point?
a. $194940
b. $600000
c. $942000
d. $342000

Answer rating: 100% (QA)

The right option is b Explanation For Wine Division Contribution Margin per unit Selling price per u... View the full answer