Product X Y Total Selling price Variable expenses Contribution margin Total fixed expenses P3 P6 1 2 P2 P4 100,000 120,000 220,000 No of units sold to breakeven No of units expected to be sold 30,000 50,000 80,000 Required a) Compute the breakeven point for each product b) Suppose that Products X and Y were made in the same plant Assume a prolonged strike at the factory of the sole supplier of raw materials prevented the production of X for all of 19xx Assume also that the Blanton fixed costs were unaffected b1) What is the breakeven point for the company as a whole, assuming that no X is produced b2) Suppose instead that the shortage applied so that only X and no Y could be produced Then what is the breakeven point for the company as a whole c) Draw a breakeven chart for the company as a whole, using an average selling price and an average variable expense per unit What is the breakeven point under this aggregate approach What is the breakeven point if you add together the individual breakeven points that you computed in requirement 1 Why is the aggregate breakeven point different from the sum of the individual breakeven points

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Product X Y Total Selling price Variable expenses Contribution margin Total fixed expenses P3 P6 1 2 P2 P4 100,000 120,000 220,000 No  of units sold to breakeven       No  of units expected to be sold 30,000 50,000 80,000 Required  a) Compute the breakeven point for each product  b) Suppose that Products X and Y were made in the same plant  Assume a prolonged strike at the factory of the sole supplier of raw materials prevented the production of X for all of 19xx  Assume also that the Blanton fixed costs were unaffected  b1) What is the breakeven point for the company as a whole, assuming that no X is produced  b2) Suppose instead that the shortage applied so that only X and no Y could be produced  Then what is the breakeven point for the company as a whole  c) Draw a breakeven chart for the company as a whole, using an average selling price and an average variable expense per unit  What is the breakeven point under this aggregate approach  What is the breakeven point if you add together the individual breakeven points that you computed in requirement 1  Why is the aggregate breakeven point different from the sum of the individual breakeven points

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Modern Control Systems

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Modern Control Systems

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