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Multiple Product CVP Analysis You're expected to give a presentation to the board of directors for your company but your computer didn't save the segmented

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Multiple Product CVP Analysis You're expected to give a presentation to the board of directors for your company but your computer didn't save the segmented income statement you made last night! You were able the following cost and sales information. $ $ Sales Variable costs Direct fixed costs Common fixed costs X-790 13,500,000 9,000,000 1,200,000 Z-800 12,150,000 7,290,000 960,000 $ 1,280,000 1. What would the each segment/product's income statement look like? What about in total? 2. You anticipate that the board is going to want more information than this. Specifically, you know they want to know about CVP analysis. What is the break-even point given this sales mix? X-790 expected sales = 90,000 units; Z-800 expected sales = 18,000 units. 3. "Thank you very much for this informative presentation," a board member says. "One quick question, though...what happens if things change from the numbers you presented and used calculations? How sensitive is break-even to changes in sales volume and internal cost adjustments?" 3B. Let's give the board member a few examples (minding only the X-790): 4. A.) What would happen if the company raised the price by $30 and projected a drop in unit sales by 500. Is this something the company should pursue? 5. B.) The company took the advice of your calculations and raised the price by $30. However, the market reacted much more violently than projected, and the company is on track to sell 10,000 fewer units (instead of the 500). Is the company worse off? By how much? Multiple Product CVP Analysis You're expected to give a presentation to the board of directors for your company but your computer didn't save the segmented income statement you made last night! You were able the following cost and sales information. $ $ Sales Variable costs Direct fixed costs Common fixed costs X-790 13,500,000 9,000,000 1,200,000 Z-800 12,150,000 7,290,000 960,000 $ 1,280,000 1. What would the each segment/product's income statement look like? What about in total? 2. You anticipate that the board is going to want more information than this. Specifically, you know they want to know about CVP analysis. What is the break-even point given this sales mix? X-790 expected sales = 90,000 units; Z-800 expected sales = 18,000 units. 3. "Thank you very much for this informative presentation," a board member says. "One quick question, though...what happens if things change from the numbers you presented and used calculations? How sensitive is break-even to changes in sales volume and internal cost adjustments?" 3B. Let's give the board member a few examples (minding only the X-790): 4. A.) What would happen if the company raised the price by $30 and projected a drop in unit sales by 500. Is this something the company should pursue? 5. B.) The company took the advice of your calculations and raised the price by $30. However, the market reacted much more violently than projected, and the company is on track to sell 10,000 fewer units (instead of the 500). Is the company worse off? By how much

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