Shoosta Ltd produces two different products with the following monthly data:  A1 A2 Total Selling price per unit $100 $12 Variable cost per unit $ 70 $ 3 Expected unit sales 21,000 14,000 35,000 Sales mix 60 percent 40 percent 100 percent Fixed costs $500,000 Assume the sales mix remains the same at all levels of sales. Round to the nearest unit of product, hundredth of a per cent, and nearest cent where appropriate. Required (show your workings for each question): b) How many units in total must be sold to break even?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Shoosta Ltd produces two different products with the following monthly data:

 A1 A2 Total

Selling price per unit $100 $12

Variable cost per unit $ 70 $ 3

Expected unit sales 21,000 14,000 35,000

Sales mix 60 percent 40 percent 100 percent

Fixed costs $500,000

Assume the sales mix remains the same at all levels of sales.

Round to the nearest unit of product, hundredth of a per cent, and nearest cent where appropriate.

Required (show your workings for each question):

b) How many units in total must be sold to break even? 

 

 

 

 

 

 

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