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Product 1 Product 2 Sales 14000 19000 Variable Expense 5180 9340 Fixed expenses

ID: 2376451 • Letter: P

Question


                              Product 1        Product 2 Sales                       14000               19000 Variable Expense     5180               9340
Fixed expenses - 17730. The break even point for the entire compay is closest to
2 - If sales mix were shift towards product 2 with total sales remaining constant, the overall break even point for the entire company is :
Please show working !
                              Product 1        Product 2 Sales                       14000               19000 Variable Expense     5180               9340
Fixed expenses - 17730. The break even point for the entire compay is closest to
2 - If sales mix were shift towards product 2 with total sales remaining constant, the overall break even point for the entire company is :
Please show working !

Explanation / Answer

Product 1        Product 2 Sales                       14000               19000 Variable Expense     5180               9340
Fixed expenses - 17730.
The break even point sales for the entire compay is closest to = 17730/18480 * 33000 = $31660
2 - If sales mix were shift towards product 2 with total sales remaining constant, the overall break even point for the entire company is :
break even point for the entire company is = 17730/9660 * 19000 = $34,872.67

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