Question
Company produces two products: squares and circles. The projected income for the coming year, segmented by product line, follows: Squares Circles Total Sales 300.000 2.500.000
Company produces two products: squares and circles. The projected income for the coming year, segmented by product line, follows:
Squares Circles Total
Sales 300.000 2.500.000 2.800.000
- Variable costs 100.000 (500.000) (600.000)
Contribution margin 200.000 2.000.000 2.200.000
- Direct fixed costs 28.000 1.500.000 1.528.000
Product margin 172.000 500.000 672.000
- Common fixed cost 100.000
Profit before tax 572.000
The selling prices are 30 TL for squares and 50 TL for circles.
REQUIRED: Compute the number of units of each product that must be sold for Burdur Company to break even
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