Fundamental Managerial Accounting Concepts with Access
Fundamental Managerial Accounting Concepts with Access
7th Edition
ISBN: 9781259683770
Author: Edmonds
Publisher: MCG
Question
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Chapter 3, Problem 16ESA

a)

To determine

The overall number of products that Company T should sell to break-even.

Given information:

Company T manufactures two products. The sales price of Product S and Product SP are $85 and $125 respectively. The variable cost per unit for Product S and Product SP are -$31 and -$45 respectively and the contribution margin per unit for Product S and Product SP are $54 and $80 respectively.

The fixed costs that Company T expects to incur is $309,000. The relative sales mix of Product S and Product SP are 70% and 30% respectively.

b)

To determine

The number of units that Company R must sell each of Product S and Product SP for break-even.

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Fundamental Managerial Accounting Concepts with Access

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