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PROBLEM A. ABC Company produces three different graded products, Alpha, Bravo and Charlie. The following cost and other information are available: Products Sales quantity
PROBLEM A. ABC Company produces three different graded products, Alpha, Bravo and Charlie. The following cost and other information are available: Products Sales quantity mix Contribution margin ratio Selling price per unit Alpha 35% 25% P1.00 Bravo Charlie 40% 25% 35% 45% P1.50 P1.00 Fixed costs of the company totaled P2,460,000, compute for the following: 1. What is the No. of units of Product Charlie to be sold to breakeven? 2. What is the Sales revenue from product Bravo to breakeven? 3. What is the Break-even point in sales revenue (Total)?
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Answer To solve the given problems we can use the breakeven analysis formula The breakeven point is the level of sales at which total revenue equals t...
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Managerial Accounting
Authors: James Jiambalvo
6th edition
9781119158226, 111915801X, 1119158222, 978-1119158011
