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Keaubie Company has the following data: Product C-25% $155 Product B $55 Product C S90 Product B $20; Product C S65 Product A-40%: Product B-3596;
Keaubie Company has the following data: Product C-25% $155 Product B $55 Product C S90 Product B $20; Product C S65 Product A-40%: Product B-3596; Sales Mix: Sales Price: Unit Variable Unit Contribution Margin: Product A Product A- $99 Product A Product B $75 Product C Costs: a. Compute the break-even point in units for the company. b. Determine the number of units to be sold at the break-even point for each product line. c. Verify that the mix of sales units determined in (b) will generate a zennet income. Use CVP Income Statement How many units will have to be sold in order to generate $100,000 of net income (round to the nearest dollar)? d. e. How many units of each product must be sold to generate the $100,000? FC $672,750 4. The following variable costing income statements are available for Antique Company and Antique Company Contemporary Company $ 700,000 $700,000 Sales revenue Variable costs Contribution margin Fixed costs Net income 350,000 560,000 Instructions (a) Compute the degree of operating leverage for each company (b) Assume that sales revenue increases by 20%. Indicate the increase in net income. (c) Prove the increase in NI for the Antique Company using a CVP Income Statement
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