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Saved KM Case Study #1 [LO 6.5, LO 6-9] Susan Lo picked up the phone and called her boss, Phil Takata, the vice presicent of marketing at Jewel Clasps Corporation: "Phit, I'm not sure how to go about answering the questions that came up at the meeting with the president yesterday What's the problem?" The president wanted to know the break-even point for each of the company's products, but I am having trouble figuring them out- I'm sure you can handle it, Susan. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the eBlook Ask follow-up meeting at 9.00. Jewel Clasps Corporation makes three different types of jewelry clasps in its manufacturing facility in North Carolina. Data concerning these products appear below Annual sales volume Unit selling price Variable expense per unit 103,000 193,000 317,e00 $2.0 $2.18 $8.90 $0.80 $1.3 $8.40 Total fixed expenses are $268,000 per year. All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable numbers of customers. The company has an extremely effective lean production system, so there are no beginning or ending work in process or finished goods inventories "TIP: To answer the questions below, It will be most helpful if you prepare segmented income statements as illustrated in your textbook O Type here to search "TIP: To answer the questions below, it will be most helpful if you prepare segmented income statements as illustrated in your textbook Required 1. What is the company's over-all break-even point in dollar sales? 2. Of the total fixed expenses of $268,000, $33,600 could be avoide ld product is dropped, $128,000 if the Silver product is dropped, and $94,000 if the Copper product is dropped. The remaining lixed expenses of $12.400 consist of common fixed expenses such as administrative salaries and rent on the factory bullding that could be avoided only by going out of business entirely. a. What is the break-even point in unit sales for each product? b. If the company sells exactly the break -even quantity of each product, what will be the overall profit of the company? eBook Ask Complete this question by entering your answers in the tabs below Req 1 Req 2A Req 2B What is the break-even point in unit sales for each product? (Do not round intermediate calculations.) Gold Break-even point in unit sales e Type here to search "TIP: To answer the questions below, it wll be most helpful if you prepare segmented income statements as llustrated in your textbook Required: 1. What is the company's over-all break-even point in dollar sales? old product is dropped, $128,000 if the Silver product is 2. Of the total fixed expenses of $268,000, $33,600 could be avoide dropped, and $94,000 if the Copper product is dropped. The remainingd expenses of $12,400 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely a. What is the break-even point in unit sales for each product? b. If the company sells exactly the break even quantity of each product, what will be the overall profit of the company? eBook Ask Complete this question by entering your answers in the tabs below Req 1 Req 2A Req 2B If the company sells exactly the break even quantity of each product, what will be the overall profit of the company? Req 2A Type here to search