Question
A company sells three products A, B and C in a 3:3:4 sales mix. Sales price: A - $10 B -$8 C - $6 Variable
A company sells three products A, B and C in a 3:3:4 sales mix. Sales price: A - $10 B -$8 C - $6 Variable cost: A - $7 B- $3 C - $3 Quantity sold A 6,000 B6000 C8000 Fixed costs are $36,000 A.Calculate breakeven in total sales dollars and in units of the 3 products B.What is the total income the company can earn with this sales mix? Say the sales mix changes to 4;3:3 with total quantity sold of 20,000 C.What is the breakeven point in sales dollars and units? D.What is the total income the company can earn with this sales mix? E.Explain why though the sale mix changed the income in parts B and D is the same.
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