DEF Company distributes two products, X and Y. Monthly sales for X are $150,000. Monthly sales for Y are $250,000. CM ratio for X is 70%. CM ratio for Y is 40%. Fixed expenses are $153,750 per month. Required: A) Prepare a contribution format income statement for the company as a whole. Calculate percentages to two decimal places. B) What is the company's breakeven point in dollar sales based on the current sales mix? C) What are the dollar sales of X and Y at the breakeven point you calculated in (B)?
DEF Company distributes two products, X and Y. Monthly sales for X are $150,000. Monthly sales for Y are $250,000. CM ratio for X is 70%. CM ratio for Y is 40%. Fixed expenses are $153,750 per month. Required: A) Prepare a contribution format income statement for the company as a whole. Calculate percentages to two decimal places. B) What is the company's breakeven point in dollar sales based on the current sales mix? C) What are the dollar sales of X and Y at the breakeven point you calculated in (B)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:DEF Company distributes two products, X and Y.
Monthly sales for X are $150,000.
Monthly sales for Y are $250,000.
CM ratio for X is 70%.
CM ratio for Y is 40%.
Fixed expenses are $153,750 per month.
Required:
A) Prepare a contribution format income statement for the company as a whole. Calculate percentages to two decimal
places.
B) What is the company's breakeven point in dollar sales based on the current sales mix?
C) What are the dollar sales of X and Y at the breakeven point you calculated in (B)?
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