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The Jordan Company Makes Three Products  Product A \text {\underline{ Product A} }

Question 112

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The Jordan Company makes three products.The cost data for these three products is as follows:

                              Product A \text {\underline{ Product A} }    Product B \text {\underline{ Product B} }    Product C \text {\underline{ Product C} }
 Selling price $10$20$40 Wariable cocte 71216\begin{array}{lcc}\text { Selling price } & \$ 10 & &\$ 20&&&\$40 \\\text { Wariable cocte } & 7& & 12&&&16\end{array}
Total annual fixed costs are $840,000. The firm's experience has been that about 20 percent of dollar sales come from product A, 60 percent from B, and 20 percent from C.
Required:
a. Compute break-even in sales dollars.
b. Determine the number of units to be sold at the break-even point.

Correct Answer:

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Total annual fixed costs are $840,000.Th...

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