Using the information provided below, calculate the break-even in sales dollars . Product K Product L Combined
Question:
Using the information provided below, calculate the break-even insales dollars.
Product K Product L Combined
Amount Per unit Amount per unit Amount
Sales Revenue $1,725,000 $7.50 $1,600,000 $0.80 $3,325,000
Variable Expenses $713,000 $3.10 $1,300,000 $0.65 $2,013,000
Contribution $1,012,000 $4.40 $300,000 $0.15 $1,312,000
Fixed Expenses $500,000
Net Income $812,000
Using the information from Q14, answer the following question:
The owners are considering a change in the product mix.They plan to decrease sales of Product K by 30,000 units and increase sales of Product L by 200,000 units.This change will NOT effect the Fixed Expenses.
1. Redo the combined statement to reflect this proposed change.
2. What is the new proposed break-even point insales dollars?
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman