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Cablesource sells two type of cable Cat5 and Cat6. Cat 5 price is $135 per box and Cat6 is $156 per box. Variable cost is
Cablesource sells two type of cable Cat5 and Cat6. Cat 5 price is $135 per box and Cat6 is $156 per box. Variable cost is 66 percent of sale price for Cat 5 and 74 percent sale price for Cat6. Fixed Cost per month is 66000. Expected sale of Cat5 is 3400 and Cat 6 6700 boxes per month.
a. What is the total profit for Cat5 and Cat6 at these sales
b. Compute the breakeven point in sales and units? Show breakeven units and sales for Cat 5 and Cat 6 product lines.
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