Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

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

Fraud Analytics Strategies And Methods For Detection And Prevention

Authors: Delena D. Spann

1st Edition

111823068X, 978-1118230688

More Books

Students also viewed these Accounting questions

Question

4. Identify the stage of the road of trials in The Wizard of Oz.

Answered: 1 week ago