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Starting from January 1, 2026 Lost As-Rock Pillow Limited will make and sell the products. The key financial information for 2026 related to these products
Starting from January 1, 2026 Lost As-Rock Pillow Limited will make and sell the products. The key financial information for 2026 related to these products are as follows Activity Rocky Chair Legless Seat Used Pillow Selling Price $83.25 $5540 $72.75 Direct Material (per unit) $13.75 $11.30 $15.60 Direct Labour (per unit) $9.60 $12.75 $9.80 Variable Manufacturing Overhead (per unit) $18.70 57.40 $11.30 Variable Selling Expense (per unit) $18.50 $11.60 $10.50 Foxed Manufacturing Overhead (total 523,600,000 $46,100,000 $36.200,000 Fixed Administrative Overhead (total) $12.300,000 534,700.000 $12.300,000 Fixed Marketing (total) $36,100,000 $9,500,000 $24.500,000 The company projects a sales mix of 2550:25. In 2026 the company plans on producing and selling 16,000,000 units. Required: 1. Compute the breakeven quantity in 2026 for the sales mix and the quantity of overall units the company plans to produce and sell 12 Marks 2. Compute the breakeven revenue in 2026 for the sales mix and the quantity of overall units the company plans to produce and sell, [2 marks] 3. Compute the breakeven quantity in 2026 for the sales mix and the quantity of overall units the company plans to produce and sell if desire a target net income of 517,000,000 12 Marks) 4. Compute the breakeven revenue in 2026 for the sales mix and the quantity of overall units the company plans to produce and sell if desire a target net income of 521,000,000 12 Mars
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