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13. Salvador Company sells two products, as follows: + Variable Expense per Selling Price per Unit Unit $300 $ 150 700 300 Product Y Product
13. Salvador Company sells two products, as follows: + Variable Expense per Selling Price per Unit Unit $300 $ 150 700 300 Product Y Product Z Fixed expenses total $500,000 annually. The expected sales mix in units is 60% for Product Y and 40% for Product Z. How much is Salvador Company's expected break-even sales in dollars? A) $920,000 B) $414,000 c) $900,000 D) $555,882 14.Peak Company sells three different products that are similar, but are differentiated by various product features. Budgeted sales by product and in total for the coming year are shown below: Standard 58% Percentage of total sales Sales Less: variable costs Contribution margin Less: fixed expenses Net operating income Product Deluxe Premium 10% 32% $50,000 $80,000 40,000 44,000 $ 10,000 $ 36,000 $120,000 36,000 $84,000 Total 100% $250,000 120,000 $130,000 $117,000 $ 13,000 If the actual percentage of sales for the year were Standard, 50%; Deluxe, 40%; and Premium, 10%, than: A) The overall contribution margin would decrease and break-even sales would increase B) The overall contribution margin would increase and break-even sales would decrease. C) The overall contribution margin would increase and break-even sales would increase. D) The overall contribution margin would decrease and break-even sales would decrease
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