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(7 marks) The following monthly budgeted data is available for the Baxter Company: Product A Product B Product C Sales $100,000 $200,000 $500,000 Variable expenses
(7 marks) The following monthly budgeted data is available for the Baxter Company: Product A Product B Product C Sales $100,000 $200,000 $500,000 Variable expenses 50,000 125,000 265,000 Contribution margin $50,000 $75,000 $235,000 Budgeted operating income for the month is $213,750. Required: MAKE SURE THAT YOU SHOW ALL OF YOUR CALCULATIONS AND PROPERLY LABEL EACH ITEM FOR FULL MARKS a) Calculate the break-even point in sales dollars for the month assuming the sales mix remains the same. (4 marks) b) Calculate sales in dollars for the month for each product line at the break-even point. (3 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)
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