Question
1. Product White Fragrant Loonzain Total Percentage of total sales.... 40% 24% 36% 100% Sales................................. $150,000 100% $390,000 100% $210,000 100% $750,000 100% Variable expenses..............
1. |
| Product |
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| White |
| Fragrant |
| Loonzain |
| Total | |||||||
| Percentage of total sales.... | 40% |
|
| 24% |
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| 36% |
|
| 100% |
|
| ||
| Sales................................. | $150,000 | 100% |
| $390,000 | 100% |
| $210,000 | 100% |
| $750,000 | 100% |
| ||
| Variable expenses.............. | 108,000 | 72% |
| 78,000 | 20% |
| 84,000 | 40% |
| 360,000 | 48% |
| ||
| Contribution margin............ | $ xx,000 | 28% |
| $xxx,000 | 80% |
| $xxx,000 | 60% |
| xxx,000 | 52% | * | ||
| Fixed expenses.................. |
|
|
|
|
|
|
|
|
| xxx,280 |
|
| ||
| Net operating income (loss) |
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|
|
|
|
|
|
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| $ (xx,280) |
|
| ||
*$390,000 $750,000 = 52%
Find The %age of variable expenses for the three products are in the tips I provided here.
2. Break-even sales would be what? Show your calculation based off text book formula and examples:
remember it is fixed expenses/CM ratio
3. Memo to the president:
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