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 36%. Fixed expenses are $160,875 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)?
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 36%. Fixed expenses are $160,875 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)?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
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![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 36%.
Fixed expenses are $160,875 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)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F679e8cca-6cc5-491c-b9ef-49448ed093a5%2Fe60316ed-9944-4950-8719-0c4ec124149b%2F6thez5u_processed.png&w=3840&q=75)
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 36%.
Fixed expenses are $160,875 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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Step 1: Introduction to Break even point in multi -product analysis:
VIEWStep 2: A) Preparation of contribution margin income statement for the company as a whole :
VIEWStep 3: B) Calculation of company's break even point in sales dollar based on current sales mix:
VIEWStep 4: C) Calculation of break even sales of X and Y in dollar :
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