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A company produces two products, A and B. The following data is available: Product Selling Price Variable Cost Fixed Cost Allocation Sales Units A $100
A company produces two products, A and B. The following data is available:
Product | Selling Price | Variable Cost | Fixed Cost Allocation | Sales Units |
A | $100 | $60 | $200,000 | 10,000 |
B | $150 | $90 | $300,000 | 8,000 |
- Prepare a contribution margin income statement for each product.
- Calculate the break-even point in units for each product.
- Determine the overall break-even point in sales dollars for the company.
- Discuss the impact of increasing the sales units of Product A by 20% on the overall profitability.
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Business Mathematics In Canada
Authors: Ernest Jerome
7th edition
978-0071091411, 71091416, 978-0070009899
