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I try- Idk how ABC Company produces two products: Pen and Pencil. The projected income for the coming year, segmented by product line, follows: Sales
I try- Idk how
ABC Company produces two products: Pen and Pencil. The projected income for the coming year, segmented by product line, follows: Sales Less: Variable costs Contribution margin Less: Direct fixed costs Product margin Less: Common fixed costs Operating income Pen Pencil Total 300,000 $2,500,000 $2,800,000 100.000 500.000 600,000 200,000 2,000,000 2,200,000 28,000 1,500,000 1,528,000 172,000 $ 500,000 $ 672,000 $ 100,000 $ 572,000 Sales price for Pen Sale price for Pencil $ $ 30.00 per unit for 50.00 per unit for 10,000 50,000 units units Required: Compute the sale mix of the two products. d) (1 Mark) e) (2 Marks) Form a package (composite) of the two products based on the sales mix, and compute the package (composite) contribution margin. f) (4 Marks) Compute the number of units of each product that the Company must sold to breakeven
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