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Dundar Mifflin manufactures and sells three products: X, Y, and Z. Annual fixed costs are $515,250 and data about the three products follow for 2017.

Dundar Mifflin manufactures and sells three products: X, Y, and Z. Annual fixed costs are $515,250 and data about the three products follow for 2017.

X Y Z
Sales $150,000 $480,000 $790,000
Variable cost 80,000 175,000 290,000

Submission Instructions:

  1. Determine the breakeven point
  2. The management expects sales to increase by 9% in 2018. What is the expected operating income in 2018?

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