Question:
A company sells two products--J and K. The sales mix is expected to be $3.00 of sales of Product K for every $1.00 of sales of Product J. Product J has a contribution margin ratio of 40% whereas Product K has a contribution margin ratio of 50%. Annual fixed expenses are expected to be $120,000. The overall break-even point for the company in dollar sales is expected to be closest to:
A) $196,000
B) $200,000
C) $253,000
D) $255,000