Nation Inc.sells three products.Last month's results are as follows:
$$\begin{array} { | l | r | r | r | }
\hline & \text { P1 } & \text { P2 } & \text { P3 } \
\hline \text { Revenues } & \$ 200,000 & \$ 300,000 & \$ 300,000 \
\hline \text { Variable costs } & 80,000 & 280,000 & 160,000 \
\hline
\end{array}$$
Total fixed costs are $100,000 marketing and $125,000 administrative.Required:
(a)What was the operating profit last month?
(b)What is Nation's break-even sales volume (at the given mix)?
(c)What is Nation's margin of safety?

Question

Nation Inc.sells three products.Last month's results are as follows:
$$\begin{array} { | l | r | r | r | } 
\hline & \text { P1 } & \text { P2 } & \text { P3 } \
\hline \text { Revenues } & \$ 200,000 & \$ 300,000 & \$ 300,000 \
\hline \text { Variable costs } & 80,000 & 280,000 & 160,000 \
\hline
\end{array}$$ 
Total fixed costs are $100,000 marketing and $125,000 administrative.Required:
(a)What was the operating profit last month?
(b)What is Nation's break-even sales volume (at the given mix)?
(c)What is Nation's margin of safety?

Quizplus · Accepted Answer

The Answer of Nation Inc.sells three products.Last month's results are as follows:
$$\begin{array} { | l | r | r | r | } 
\hline & \text { P1 } & \text { P2 } & \text { P3 } \
\hline \text { Revenues } & \$ 200,000 & \$ 300,000 & \$ 300,000 \
\hline \text { Variable costs } & 80,000 & 280,000 & 160,000 \
\hline
\end{array}$$ 
Total fixed costs are $100,000 marketing and $125,000 administrative.Required:
(a)What was the operating profit last month?
(b)What is Nation's break-even sales volume (at the given mix)?
(c)What is Nation's margin of safety?

Nation Inc Total Fixed Costs Are $100,000 Marketing and $125,000 Administrative