Question
Sophiora Cosmetic Ltd produces two beauty products and provides the following information: Skincare Makeup Selling price $130 $100 Variable costs $90 $70 From the sales
Sophiora Cosmetic Ltd produces two beauty products and provides the following information:
Skincare Makeup
Selling price $130 $100
Variable costs $90 $70
From the sales report of this period, the manager found that in average the company sells 40 units of Skincare and 60 units of Makeup. The total fixed costs for the period are $51,000.
Required(show your working):
(a)Calculate the estimated breakeven point in units and in sales dollars of the Skincare.
(b)Calculate the estimated breakeven point in units and in sales dollars of the Makeup.
(c)What is the operating profit when total sales of both products are 2500 units.
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
