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Sophiora Cosmetic Ltd produces two beauty products and provides the following information: Selling price Variable costs Skin-care $130 $90 Make-up $100 $70 From the sales
Sophiora Cosmetic Ltd produces two beauty products and provides the following information: Selling price Variable costs Skin-care $130 $90 Make-up $100 $70 From the sales report of this period, the manager found that in average the company sells 40 units of Skin- care and 60 units of Make-up. The total fixed costs for the period are $51,000. Required (show your working): (a) Calculate the estimated break-even point in units and in sales dollars of the skin-care. (10 marks) (b) (c) Calculate the estimated break-even point in units and in sales dollars of the Make-up. What is the operating profit when total sales of both products are 2 500 units. (10 marks) (10 marks)
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