Information for a company's two products follows. Total fixed costs are $563,200, and target income is $140,800, Contribution margin per unit Percent of company sales 1. Compute the break-even point in units. Numerator Product 1 $ 200 60% Product 2 $ 140 40% Denominator 2. Determine the number of units of each product that will be sold at the break-even point. Product 1 Product 2 3. Compute the number of each product sold to reach target income of $140,800. Product 1 unit sales Product 2 unit sales Break Even Units = Break even units

Information for a company's two products follows. Total fixed costs are $563,200, and target income is $140,800, Contribution margin per unit Percent of company sales 1. Compute the break-even point in units. Numerator Product 1 $ 200 60% Product 2 $ 140 40% Denominator 2. Determine the number of units of each product that will be sold at the break-even point. Product 1 Product 2 3. Compute the number of each product sold to reach target income of $140,800. Product 1 unit sales Product 2 unit sales Break Even Units = Break even units

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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