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2022 Winter offers two products. At present, the following represents the usual results of a month's operations: Product K Product L Combined Amount Per unit
2022 Winter offers two products. At present, the following represents the usual results of a month's operations: Product K Product L Combined Amount Per unit Amount per unit Amount Sales Revenue $1,650,000 $7.50 $2,000,000 $1.00 $3,650,000 Variable Expenses $682,000 $3.10 $1,300,000 $0.65 $1,982,000 Contribution $968,000 $4.40 $700,000 $0.35 $1,668,000 Fixed Expenses $500,000 Net Income $1,168,000 A. Compute the break-even in terms of sales dollars C. Refer to B. above. Under the new plan, find the break-even point in terms of dollars sales B. The owners are considering a decrease in product K's unit sales of 30,000 units (not $'s) and increasing product L's unit sales by 200,000 (not $'s), with no change to total fixed expenses. The sales price per unit and variable cost per unit will not change (but the totals will change as volumes change). Redo the combined statement.
2022 Winter | offers two products. At present, the following represents the usual results | |||||||||||||
of a month's operations: | ||||||||||||||
Product K | Product L | Combined | ||||||||||||
Amount | Per unit | Amount | per unit | Amount | ||||||||||
Sales Revenue | $1,650,000 | $7.50 | $2,000,000 | $1.00 | $3,650,000 | |||||||||
Variable Expenses | $682,000 | $3.10 | $1,300,000 | $0.65 | $1,982,000 | |||||||||
Contribution | $968,000 | $4.40 | $700,000 | $0.35 | $1,668,000 | |||||||||
Fixed Expenses | $500,000 | |||||||||||||
Net Income | $1,168,000 | |||||||||||||
A. | Compute the break-even in terms of sales dollars | |||||||||||||
C. | Refer to B. above. Under the new plan, find the break-even point in terms of dollars sales | |||||||||||||
B. | The owners are considering a decrease in product K's unit sales of | |||||||||||||
30,000 | units (not $'s) and increasing product L's unit sales by | 200,000 | ||||||||||||
(not $'s), with no change to total fixed expenses. | ||||||||||||||
The sales price per unit and variable cost per unit will not change | ||||||||||||||
(but the totals will change as volumes change). Redo the combined statement. |
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