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Thomlinson Company Is Considering the Development of Two Products: No

Question 84

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Thomlinson Company is considering the development of two products: no.65 or no.66.Manufacturing cost information follows.
A.What is the break-even sales volume (in dollars)on product no.66?
B.Which of the two products will be more profitable at a sales level of 25,000 units?
C.At what unit-volume level will the profit/loss on product no.65 equal the profit/loss on product no.66?
Thomlinson Company is considering the development of two products: no.65 or no.66.Manufacturing cost information follows. A.What is the break-even sales volume (in dollars)on product no.66? B.Which of the two products will be more profitable at a sales level of 25,000 units? C.At what unit-volume level will the profit/loss on product no.65 equal the profit/loss on product no.66?     C.X = Number of units ($50 - $38)X - $220,000 = ($50 - $30)X - $340,000 $12X - $220,000 = $20X - $340,000 $8X = $120,000 X = 15,000 units
C.X = Number of units
($50 - $38)X - $220,000 = ($50 - $30)X - $340,000
$12X - $220,000 = $20X - $340,000
$8X = $120,000
X = 15,000 units

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