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Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as
Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Sales Price Variable Cost Product per Unit per Unit AA $45 $30 88 45 15 35 15 CC Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $307,500 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs: B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA 188 CC C. What is their break-even point in sales dollars? Break-even point in sales
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