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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. |
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