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Khan Company manufactures two products. Information about the two products is as follows: Product LL Selling price per unit $192 Variable manufacturing costs per unit
Khan Company manufactures two products. Information about the two products is as follows: Product LL Selling price per unit $192 Variable manufacturing costs per unit 175 Product MM $89 80 Variable selling costs per unit 10 2 The company expects fixed manufacturing costs to be $231,279 and fixed selling costs to be $55,476. The firm expects 80% of its sales (in units) to be Product LL (i.e. a sales mix of 4:1). Required (round to 2 decimal places): 1. Assuming the sales mix given above, determine the break-even point for the whole company (and show break-even volume for each product individually: LL and MM). 2. Calculate the number of units of each product that must be sold if the company has a target profit of $43,000. 3. Based on your calculation above, state whether the riskiness of this business is either high/moderate/low/unknown- and briefly explain why
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