PB7. LO 3.4 Abilene Industries manufactures and sells three products (XX, YY, and ZZ). Thesales price and unit variable cost for the three products are as follows:ProductXXSales Priceper Unit$756055Variable Costper Unit$452515ZZTheir sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three productsare $345,000 per year.A. What are total variable costs for Abilene with their current product mix?B. Calculate the number of units of each product that will need to be sold in order forAbilene to break even.C. What is their break-even point in sales dollars?D. Using an income statement format, prove that this is the break-even point.MacBook AirFocus

A. What are total variable costs for Abilene with their current product mix? B. Calculate the number of units of each product that will need to be sold in order for Abilene to break even. C. What is their break-even point in sales dollars? D. Using an income statement format, prove that this is the break-even point.

A. What are total variable costs for Abilene with their current product mix? B. Calculate the number of units of each product that will need to be sold in order for Abilene to break even. C. What is their break-even point in sales dollars? D. Using an income statement format, prove that this is the break-even point.

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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