@. Show Me How Calculator Book ales Mix and Break-Even Sales New Wave Technology

Question

@. Show Me How Calculator Book ales Mix and Break-Even Sales New Wave Technology Inc. manufactures and sells two products, MP3 players and satelite radios. The fixed costs are players and 30% satellite radios. The unit selling price and the uit variable cost for each product are as follows: Print Item $245,100, and the sales mix is 70% MP3 Products Unit Selling Price Unit Variable Cost MP3 players $40 $30 Satellite radios 100 Compute the break-even sales (units) for both products combined X units b. Now many units of each produt, MP3 players and satelite radios, would be sold at the break-even point MP3 plavers Satellite radios Sublract the combined unit vanable cost othe shift

Explanation / Answer

a) Break Even Sales (Units ) = Fixed Cost / Contribution Margin Total as per Sales Mix

= $ 245,100 / $ 19

= 12,900 Units

Hence the correct answer is 12,900

Note :

b)

Units of each Product sold at Break Even Point :

MP3 Players = 12,900 Units * 70%

= 9,030 units

Satellite Radios = 12,900 Units * 30%

= 3,870 Units

MP3 Players Satellite Radios Total Selling Price Per Unit 40 100 Less : Variable Cost Per Unit 30 60 Contribution Margin  Per Unit 10 40 Sales Mix 70% 30% Contribution Margin as per Sales Mix (Contribution Margin * Sales Mix%) 7 12 19

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.