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FINTEX TEXTILE CO. Two different products, Spacemen and Racemen toys are manufactured in two different product lines in TOY Corp. and then sold in
FINTEX TEXTILE CO. Two different products, Spacemen and Racemen toys are manufactured in two different product lines in TOY Corp. and then sold in the market. Actually they may be produced both in every production line. The financial statements of the product lines for the end of a period are given below END OF PERIOD INCOME STATEMENTS (000.-S) SPACEMEN SALE INCOME 58.000 RACEMEN 41.600 COST OF MANUFACTURED GOODS SOLD 52.200 36.400 Direct Material 24.200 26.400 Direct Labor Fixed Manufacturing Overhead SALE PROFIT 18.400 7.600 9.600 2.400 5.800 5.200 OPERATING EXPENSES Fixed Administration Expenses Variable Marketing Expenses OPERATING PROFIT 3.370 1.280 1.600 400 1.770 880 2.430 3.920 In order to plan the following period's production in a meeting of the Board of Managers, the profit acquired in the Racemen toys is approved and decided to enhance. Investigate the decision of the Board of Managers and explain why. Compute the Breakeven points of these two different product lines if the sale quantities are 14.500 Pcs for Spacemen toys and 16.000 Pcs for Racemen toys.
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