Multiple Products Most businesses sell several products at varying prices. The products often have different unit variable costs. Thus, the total profit and the breakeven point depend on the proportions in which the products are sold. Sales mix is the relative contribution of sales among various products sold by a firm. Assume that the sales of Jordan, Inc., are the following for a typical year: 11eb7c27_d41d_233c_9ab5_4fda8a85445f_SM1604_00 Assume the following unit selling prices and unit variable costs: 11eb7c27_d41d_233d_9ab5_a52ba1195bdb_SM1604_00 Fixed costs are $400,000 per year, of which $60,000 are batch-related and $340,000 are facilitiesrelated. Assume sales mix is constant in units. Required 1. Determine the breakeven point in units. 2. Determine the number of units required for a before-tax net profit of $40,000.

Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

النسخة 6الرقم المعياري الدولي: 978-0078025532

Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

النسخة 6الرقم المعياري الدولي: 978-0078025532

تمرين 19

Multiple Products Most businesses sell several products at varying prices. The products often have different unit variable costs. Thus, the total profit and the breakeven point depend on the proportions in which the products are sold. Sales mix is the relative contribution of sales among various products sold by a firm. Assume that the sales of Jordan, Inc., are the following for a typical year:

Assume the following unit selling prices and unit variable costs:

Fixed costs are $400,000 per year, of which $60,000 are batch-related and $340,000 are facilitiesrelated. Assume sales mix is constant in units.
Required
1. Determine the breakeven point in units.
2. Determine the number of units required for a before-tax net profit of $40,000.

التوضيح

موثّق

Breakeven Point:
Break even for the com...