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FINTEX TEXTILE CORPORATION Two different products, combed cotton and woven are manufactured in two different product lines in Fintex Textile Corp. and then sold in
FINTEX TEXTILE CORPORATION Two different products, combed cotton and woven are manufactured in two different product lines in Fintex Textile Corp. and then sold in the market. The financial statements of the product lines for the end of a period are given below END OF PERIOD INCOME STATEMENTS (000.- S) COMBED COTTON 58.000 52.200 SALE INCOME COST OF MANUFACTURED GOODS SOLD Direct Material Direct Labor Fixed Manufacturing Overhead SALE PROFIT 24.200 18.400 9.600 5.800 WOVEN 41.600 36.400 26.400 7.600 2.400 5.200 1.280 OPERATING EXPENSES Fixed Administration Expenses Variable Marketing Expenses OPERATING PROFIT 3.370 1.600 1.770 2.430 400 880 3.920 In order to plan the following perod's production in a meeting of the Board of Managers, the profit acquired in the woven products 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 Combed Cotton and 16.000 Pcs for Woven goods
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