The Young Manufacturing Company produces the following three products:
Fixed costs are £76,000 per year.
Fifty percent of all sales in units are hammers, 30 percent are screwdrivers, and 20 percent are saws.
Required:
Calculate the following values:

a.
Break-even point in total units
b.
Number of hammers that will be sold at break-even
c.
Total sales in units to obtain a before-tax profit of £19,000

Question

The Young Manufacturing Company produces the following three products:
Fixed costs are £76,000 per year.
Fifty percent of all sales in units are hammers, 30 percent are screwdrivers, and 20 percent are saws.
Required:
Calculate the following values:
  
a.
Break-even point in total units
b.
Number of hammers that will be sold at break-even
c.
Total sales in units to obtain a before-tax profit of £19,000

Quizplus · Accepted Answer

The Answer of The Young Manufacturing Company produces the following three products:
Fixed costs are £76,000 per year.
Fifty percent of all sales in units are hammers, 30 percent are screwdrivers, and 20 percent are saws.
Required:
Calculate the following values:
  
a.
Break-even point in total units
b.
Number of hammers that will be sold at break-even
c.
Total sales in units to obtain a before-tax profit of £19,000

The Young Manufacturing Company Produces the Following Three Products