Cost Volume Profit. ABC produces and sells two products. Data concerning those products for the most recent month appear below: B Total Sales $20,000 10,000 $10,000 $80,000 $100,000 Variable expenses 50,000 60,000 Contribution margin Fixed $30,000 40,000 30,000 $10,000 expenses Net operating income Required: 1. Compute the overall break-even point for the company in sales dollars. Weighted CMratio: CM 40k/sales 100k = 40% FC/CM 30k / CMratio (40k/100k) 30k/.4 = 75,000 2. Verify the overall break-even point for the company by calculating the appropriate levels of total sales for the two products [Note: Only total sales are required for each product, and no need to calculate variable expenses and other components of income statement].
Cost Volume Profit. ABC produces and sells two products. Data concerning those products for the most recent month appear below: B Total Sales $20,000 10,000 $10,000 $80,000 $100,000 Variable expenses 50,000 60,000 Contribution margin Fixed $30,000 40,000 30,000 $10,000 expenses Net operating income Required: 1. Compute the overall break-even point for the company in sales dollars. Weighted CMratio: CM 40k/sales 100k = 40% FC/CM 30k / CMratio (40k/100k) 30k/.4 = 75,000 2. Verify the overall break-even point for the company by calculating the appropriate levels of total sales for the two products [Note: Only total sales are required for each product, and no need to calculate variable expenses and other components of income statement].
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solve question number 11 with steps.it has part 1 and part 2 . The subject is Managerial Accounting .
![Cost Volume Profit. ABC produces and sells two products. Data concerning those products for the most
recent month appear below:
A
B
Total
Sales
$20,000
10,000
$80,000 $100,000
60,000
40,000
30,000
$10,000
Variable expenses
50,000
Contribution margin
Fixed expenses
$10,000
$30,000
Net operating income
Required:
1. Compute the overall break-even point for the company in sales dollars.
Weighted CMratio: CM 40k/sales 100k = 40%
FC/CM 30k / CMratio (40k/100k)
30k/.4 = 75,000
2. Verify the overall break-even point for the company by calculating the appropriate levels of total
sales for the two products [Note: Only total sales are required for each product, and no need to
calculate variable expenses and other components of income statement].](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7b2f9810-3abc-434a-95db-1365b76731b2%2F1dca1d15-db41-4d11-93f1-28039951051e%2F5rxu1js_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cost Volume Profit. ABC produces and sells two products. Data concerning those products for the most
recent month appear below:
A
B
Total
Sales
$20,000
10,000
$80,000 $100,000
60,000
40,000
30,000
$10,000
Variable expenses
50,000
Contribution margin
Fixed expenses
$10,000
$30,000
Net operating income
Required:
1. Compute the overall break-even point for the company in sales dollars.
Weighted CMratio: CM 40k/sales 100k = 40%
FC/CM 30k / CMratio (40k/100k)
30k/.4 = 75,000
2. Verify the overall break-even point for the company by calculating the appropriate levels of total
sales for the two products [Note: Only total sales are required for each product, and no need to
calculate variable expenses and other components of income statement].
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