Part 1 BITCO has three products B1, B2, and B3, and its fixed costs are...
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Accounting
Part 1
BITCO has three products B1, B2, and B3, and its fixed costs are $115,200. The sales mix for its products are 30% of B1, 40% of B2, and 30% of B3. Information about the three products follows:
Sales mix proportion 30% 40% 30%
B1 B2 B3
Variable cost per unit $28 $12 $26
Selling price per unit $40 $30 $40
Calculate the number of units of each individual product to be sold at the break-even point.
Group of answer choices
B1-- 2,304; B2-- 3,072; B3 --2,304
B1-- 1,200; B2-- 1,600; B3-- 1,200
B1-- 7,680; B2 --7,680; B3 --7,680
B1-- 1,500; B2-- 3,000; B3-- 1,500
B1-- 3,200; B2-- 6,400; B3-- 4,800
Part 2
A company incurs $60,000 of annual fixed costs in manufacturing and selling a product that it sells for $15 per unit. The variable costs of manufacturing and selling the product are $9 per unit. The breakeven point in dollars is:
Group of answer choices
$150,000
$15,000
$100,000
$10,000
$60,000
part 3
BITCO's sales mix is 60% of A and 40% of B. Selling prices for each product are $20 & $30, respectively.
Variable costs per unit are $12 & $18, respectively. Fixed costs are $320,000.
How many units of A & B does it take to achieve a pre-tax target income of $44,000?
Group of answer choices
A 14,000; B 21,000
A 8,000; B 12,000;
A 4,000; B 6,000;
A 6,400; B 9,600;
A 12,000; B 18,000;
Answer & Explanation
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