Find the breakeven sales revenue, if the relative sales mix is 40 percent for product 1 and 60 percent for product 2.

Question

Payroll Register and Payroll Journal Entry Mary Losch operates a travel agency called Mary's Luxury Travel. She has five employees, all of whom are paid on a weekly basis. The travel agency uses a payroll register, individual employee earnings records, and a general journal. Mary's Luxury Travel uses a weekly federal income tax withholding table. Refer to Figure 8-4 in the text. The payroll data for each employee for the week ended March 22, 20-, are given. Employees are paid 1% times the regular rate for working over 40 hours a week. No. of Marital Total Hours Name Allowances Status Worked Mar. 16-22 Total Earnings Rate Jan. 1-Mar. 15 Bacon, Andrea 4 M 44 $14.00 $6,300.00 Cole, Andrew 1 S 40 15.00 6,150.00 Hicks, Melvin 3 M 44 13.50 5,805.00 Leung, Cara 1 S 36 14.00 5,600.00 Melling, Melissa 2 M 40 14.50 5,945.00 Social Security tax is withheld from the first $128,400 of earnings at the rate of 6.2%. Medicare tax is withheld at the rate of 1.45%, and city earnings tax at the rate of…

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Chapter 20, Problem 4E

a)

To determine

Find the breakeven sales revenue, if the relative sales mix is 40 percent for product 1 and 60 percent for product 2.

b)

To determine

Compute the total monthly sales revenue that is required to earn a monthly operating income of $81,000 where the relative sales mix is 20% for product 1 and 80% for product 2.

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