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Basal Company manufactures two products. Information about the two products is as follows: Basal Company manufactures two products. Information about the two products is as
Basal Company manufactures two products. Information about the two products is as follows:
Basal Company manufactures two products. Information about the two products is as follows: Product Product JJ KK Selling price per unit $280 $105 Variable manufacturing costs per unit 204 66 Variable selling costs per unit 16 10 The company expects fixed manufacturing costs to be $212,880 and fixed selling costs to be $55,582. The firm expects 60% of its sales in units) to be Product JJ (i.e. sales mix of 3:2). Required (round to 2 decimal places): 1. Assuming the sales mix given above, determine the break-even point for the whole company and show break-even volume for each product: JJ and KK). 2. Calculate the number of units of each product that must be sold if the company has a target profit of $42.000 3. Based on your calculation above, state whether the riskiness of this business is either high/moderate/low/unknown - and briefly explain why? LISATPAT. PALMAS
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