Cablesource sells two type of cable Cat5 and Cat6. Cat 5 price is $135 per box and Cat6 is $156 per box. Variable cost is 66 percent of sale price for Cat 5 and 74 percent sale price for Cat6. Fixed Cost per month is 66000. Expected sale of Cat5 is 3400 and Cat 6 6700 boxes per month. a. What is the total profit for Cat5 and Cat6 at these sales b. Compute the breakeven point in sales and units? Show breakeven units and sales for Cat 5 and Cat 6 product lines.
Cablesource sells two type of cable Cat5 and Cat6. Cat 5 price is $135 per box and Cat6 is $156 per box. Variable cost is 66 percent of sale price for Cat 5 and 74 percent sale price for Cat6. Fixed Cost per month is 66000. Expected sale of Cat5 is 3400 and Cat 6 6700 boxes per month. a. What is the total profit for Cat5 and Cat6 at these sales b. Compute the breakeven point in sales and units? Show breakeven units and sales for Cat 5 and Cat 6 product lines.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cablesource sells two type of cable Cat5
and Cat6. Cat 5 price is $135 per box and
Cat6 is $156 per box. Variable cost is 66
percent of sale price for Cat 5 and 74
percent sale price for Cat6. Fixed Cost per
month is 66000. Expected sale of Cat5 is
3400 and Cat 6 6700 boxes per month.
a. What is the total profit for Cat5 and Cat6
at these sales
b. Compute the breakeven point in sales
and units? Show breakeven units and sales
for Cat 5 and Cat 6 product lines.
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