Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5.- One company manufactures and sells two products lines (LI & L2). Its contribution margin percentages are 42% and 36% respectively. Its Fixed costs per

image text in transcribed
5.- One company manufactures and sells two products lines (LI & L2). Its contribution margin percentages are 42% and 36% respectively. Its Fixed costs per months are 90,000, and the breakeven point per months is 6240,000 calculate: 1) What is the weighted-average contribution margin percentage? 2) what is the sales mix (percentages) for L1 & L2? 3) Calculate the total revenues and the revenues per products needed to earn a target operating income of e 30,000? 4) According to the results of Company's Break Even Point and related product L2: If the selling price of product L2 decrease 10% and this will mean an increase on units sold of 20%. What would be the new revenues of product L2 after these changes? what would be the new contribution margin percentage of product L2 after this change

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions