Question
Mount Carmel Company sells only two products, Product A and Product B. selling price product A $600000 Variable cost per unit product A 360,000 contribution
Mount Carmel Company sells only two products, Product A and Product B.
selling price product A $600000 Variable cost per unit product A 360,000 contribution Margin product A 240,000
selling price product B $1000000 variable cost per unit product B 860,000 contribution margin product B 500,000
fixed cost total 555,000
operating income total $185,000
A. Determine the overall break-even point for the company in total sales dollars. Do not round numbers. Show your work.
B. What is the amount of sales for each product at the break-even point?
C. If the sales mix shifts toward Product A with no change in total sales, what will happen to the break-even point for the company? Explain.
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