Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. using the following unit data for a company that p

Using the following unit data for a company that produces Product A and B, what is...

Free

80.2K

Verified Solution

Question

Accounting

Using the following unit data for a company that producesProduct A and B, what is the breakeven point (round to nearestunit) when fixed costs total $175,000?
Product A Product B
Units sold last year 2,250 1,000
Sales price $200 $450
Cost of goods sold   145   350
Salescommission     15    37
Variable costs   160   387
Contribution margin $ 40 $ 63

Answer & Explanation Solved by verified expert
3.9 Ratings (415 Votes)

Breakeven units

Product A= 2574 units

Product B= 1144 units

Working

Product A

Product B

A

Price

$           200.00

$    450.00

B

Variable Cost per unit

$           160.00

$    387.00

C = A - B

Contribution Margin per unit

$              40.00

$       63.00

D

Product Mix

69.23%

30.77%

E = C x D

Weighted Average Contribution Margin

$              27.69

$       19.38

A

Total Fixed Cost

$ 1,75,000.00

B

Weighted Average Contribution Margin (27.69+19.38)

$              47.08

C = A/B

Multi Product Break Even point

           3,717.32

C x 42%

Product A

                 2,574

C x 29%

Product B

                 1,144

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The following table summarizes the yields to maturity on several? one-year, zero-coupon? securities: Security Yield ?(%) Treasury...

Finance
Q

The use of technology in therapy is becoming more common. Not only are psychotherapists conducting therapy...

Psychology
Q

Unpolarised light is incident on a plane transparent medium If the reflected and refracted rays...

Physics
Q

4 i Each section of the spinner shown has the same area Find the probability...

Algebra
Q

Acompany has a $500,000 30-year fixed loan payable at an interest rate of...

Accounting
Q

this question has so many answer on chegg, but all are from different figures, please...

Accounting
Q

1) Max Company uses a job order cost accounting system. In the last month, the...

Accounting
Q

porters corner has sales of $4,650 net income of $490 total assets of $5,820 and...

Accounting
Q

Rosman Company has an opportunity to pursue a capital budgeting project with a five-year time...

Accounting
Q

Based on the presented financial ratios, do you think each company is improving or deteriorating?...

Accounting
Q

Why has the ATO stipulated specific taxation requirements for business documents? 3050 words

Accounting
Q

Problem 14-23 (Algo) Comprehensive Problem [LO14-1, LO14-2, LO14-3, LO14-5, LO14-6] Lou Barlow, a divisional manager...

Accounting