Grayson Enterprises manufactures springs and shock absorbers. Springs account for 40% of the company's total...
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Accounting
Grayson Enterprises manufactures springs and shock absorbers. Springs account for 40% of the company's total sales revenue, whereas shocks account for about 60%. The contribution margin ratios for springs and shocks are 45% and 35%, respectively. Grayson's fixed costs average $450,000 per month.
Grayson's monthly break-even point expressed in sales dollars is: (Round the answer to the nearest dollar.)
A)$2,285,714.
B)$1,000,000.
C)$1,153,846.
D)$1,285,714.
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