Question
MJ Ltd. Manufactures and sells four product lines - North, South, East and West. The sales mix in terms of revenue comprises of the following:
MJ Ltd. Manufactures and sells four product lines - North, South, East and West. The sales mix in terms of revenue comprises of the following:
Product Line Percentage
North 33.33%
South 41.67%
East 16.67%
West 8.33%
100%
Total budgeted monthly sales are set to be 600,000 units per month.
Variable costs information for the product lines is given below:
Product Line
North 60% of selling price
South 68% of selling price
East 80% of selling price
West 40% of selling price
Fixed cost per month amounts to $159,000.
Required: (i) Calculate the break-even for the products on an overall basis. State any necessary assumption(s) for your computations.
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1118608224, 1118608227, 730323994, 9780730323990, 730319172, 9780730319177, 978-1118608227
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