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Driver Company manufactures two products. Data concern-ing these products are shown below: Direct TotalLabor ManufacturingHours OverheadHighest observed level . . . . . . . 6,000 $17,000Lowest observed level . . . . . . . . 4,000 14,000 Product A Product BTotal monthly demand (in units). . 1,000 200Sales price per unit . . . . . . . . . $400 $500Contribution margin ratio. . . . . 30% 40%Relative sales mix . . . . . . . . . . . 80% 20%If fixed costs are equal to $320,000, what amount of totalsales revenue is needed to break even?a. $914,286. c. $320,000.b. $457,143. d. $1,000,000.

Driver Company manufactures two products. Data concern-ing these products are shown below: Direct TotalLabor ManufacturingHours OverheadHighest observed level . . . . . . . 6,000 $17,000Lowest observed level . . . . . . . . 4,000 14,000 Product A Product BTotal monthly demand (in units). . 1,000 200Sales price per unit . . . . . . . . . $400 $500Contribution margin ratio. . . . . 30% 40%Relative sales mix . . . . . . . . . . . 80% 20%If fixed costs are equal to $320,000, what amount of totalsales revenue is needed to break even?a. $914,286. c. $320,000.b. $457,143. d. $1,000,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Driver Company manufactures two products. Data concern-
ing these products are shown below:

Direct Total
Labor Manufacturing
Hours Overhead
Highest observed level . . . . . . . 6,000 $17,000
Lowest observed level . . . . . . . . 4,000 14,000

Product A Product B
Total monthly demand (in units). . 1,000 200
Sales price per unit . . . . . . . . . $400 $500
Contribution margin ratio. . . . . 30% 40%
Relative sales mix . . . . . . . . . . . 80% 20%
If fixed costs are equal to $320,000, what amount of total
sales revenue is needed to break even?
a. $914,286. c. $320,000.
b. $457,143. d. $1,000,000.

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