Assignment: 21-4 Homework - Exercise 21-21 (Algorithmic) Sales Mix and Break-Eve
ID: 2418101 • Letter: A
Question
Assignment: 21-4 Homework - Exercise 21-21 (Algorithmic)
Sales Mix and Break-Even Sales
New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $279,400, and the sales mix is 60% MP3 players and 40% satellite radios. The unit selling price and the unit variable cost for each product are as follows:
A. Compute the break-even sales (units) for both products combined.
_________ units
B. How many units of each product, MP3 players and satellite radios, would be sold at the break-even point?
Products Unit Selling Price Unit Variable Cost MP3 players $40 $30 Satellite radios 100 60Explanation / Answer
Contribution = Sales - variable cost
= ($10 *60% ) + (40*40%)
total contribution = $22
Units (BEP) = $279,400/22 = 23,283 units
(2) Mp3 player = 23,283 @60% = 13,970 units
Statellited = 23,283 @40% = 9313 units
Contribution = Sales - variable cost
= ($10 *60% ) + (40*40%)
total contribution = $22
Units (BEP) = $279,400/22 = 23,283 units
(2) Mp3 player = 23,283 @60% = 13,970 units
Statellited = 23,283 @40% = 9313 units
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.