Joseph Co.has three products A, B, and C, and its fixed costs are $69,000.The sales mix for its products are 3 units of A, 4 units of B, and 1 unit of C.Information about the three products follows:
$\begin{array}{lrrr}
& \underline { A }& \underline { B }& \underline { C } \
\text { Projected sales in dollars } &\$ 192,00 & \$ 192,000
& \$ 64,000\
&0\
\text { Selling price per unit } &\$ 40 & \$ 30 & \$ 40 \
\text { Contribution margin ratio } &30 \% & 35 \% & 35 \%
\end{array}$ a.Calculate the company's break-even point in composite units and sales dollars.
b.Calculate the number of units of each individual product to be sold at the break-even point.

Question

Joseph Co.has three products A, B, and C, and its fixed costs are $69,000.The sales mix for its products are 3 units of A, 4 units of B, and 1 unit of C.Information about the three products follows:
 $\begin{array}{lrrr}
& \underline {  A   }& \underline {  B   }& \underline {  C   } \
\text { Projected sales in dollars } &\$ 192,00 & \$ 192,000 
& \$ 64,000\
&0\
\text { Selling price per unit } &\$ 40 & \$ 30 & \$ 40 \
\text {  Contribution margin ratio } &30 \% & 35 \% & 35 \%
\end{array}$ a.Calculate the company's break-even point in composite units and sales dollars.
b.Calculate the number of units of each individual product to be sold at the break-even point.

Quizplus · Accepted Answer

The Answer of Joseph Co.has three products A, B, and C, and its fixed costs are $69,000.The sales mix for its products are 3 units of A, 4 units of B, and 1 unit of C.Information about the three products follows:
 $\begin{array}{lrrr}
& \underline {  A   }& \underline {  B   }& \underline {  C   } \
\text { Projected sales in dollars } &\$ 192,00 & \$ 192,000 
& \$ 64,000\
&0\
\text { Selling price per unit } &\$ 40 & \$ 30 & \$ 40 \
\text {  Contribution margin ratio } &30 \% & 35 \% & 35 \%
\end{array}$ a.Calculate the company's break-even point in composite units and sales dollars.
b.Calculate the number of units of each individual product to be sold at the break-even point.

Joseph CoHas Three Products A, B, and C, and Its Fixed