Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

EXERCISE 3 The administrative director of Beta Spa, has given to the general director the following table with three products' costs of the company: Total

image text in transcribedimage text in transcribedimage text in transcribed
EXERCISE 3 The administrative director of Beta Spa, has given to the general director the following table with three products' costs of the company: Total costs A B C Total Direct materials cost (() 4.500 E 8.000 6 3.000 E 15.500 E Direct labor cost (E) 5.000 E 6.000 E 2.000 E 13.000 E Specific fixed costs (e) 3.500 6 4.000 6 1.500 6 9.000 E General fixed costs () 2.613 E 4.645 E 1.742 E 9.000 6 Total 15.613 E 22.645 E 8.242 6 46.500 E Units produced for each one are: A B C Units 1500 2000 1000 Specific fixed costs are avoidable for the interruption of the referred product's production. Direct materials cost and direct labor cost are variable. General fixed costs are allocated on the total of direct materials cost (15.500 (). All data are about 2018.The general director must decide: 2000 units of product B is sold at the price of 246. If the principle competitor cuts the price to 206, Beta could hav two alternatives: a. Take price unchanged, sell only 1500 units of B. b. Cut the price to 206 and continue to sell 2000 units of B. What decision is the most convenient for the company?Calculate the Breakeven point revenue for the company, assuming a product mix of 359%, 40% and 25%, and price 20 e, 24 E and 14 E

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microsoft Excel For Accounting The First Course

Authors: L Murphy Smith, Katherine Smith

1st Edition

0130085529, 978-0130085528

More Books

Students also viewed these Accounting questions

Question

1. Information that is currently accessible (recognition).

Answered: 1 week ago