How many total units would the company have needed to sell to break even? NUBD Corporation manufadures and sells two products: A123 and B456. The operating results ofthe company are as follows:Product A1232,000P10Product B4563,000P5Sales in unitsSales price per unitVariable costs ratio70%60%In addition, the com pany incurred to tal fixed costs in the amount of P 18,000.

The break even sales are the sales where business earns no profit no loss during the period.

Answered: NUBD Corporation manufactures and sells…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How does the break-even point equation change for a company with multiple products or services compared to a single-product company?
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How much would be the net effect on the total segment profit if product B is dropped and discontinued? Assume that by dropping product B, product A would increase A's sales by 80%. How much would be the net effect on the total segment profit? Assume that by dropping product B, product A would decrease A's sales by 20%. Moreover, 30,000 of common costs allocated are avoidable. How much would be the net effect on the total segment profit?
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NUBD Corporation manufactures and sells two products: A123 and B456. The ope the company are as follows: Product A123 2,000 P10 70% Product B456 3,000 P5 Sales in units Sales price per unit Variable costs ratio 60% In addition, the com pany incured to tal fixed costs in the amount of P 18,000.