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The Beans Company manufactures two products, baubles and trinkets. Attached photo shows the projection for the coming year. 1. What is the breakeven point in
The Beans Company manufactures two products, baubles and trinkets. Attached photo shows the projection for the coming year.
BAUBLES TRINKETS Totals Units Amount Units Amount Sales 10,000 P10,000 7,500 P 10,000 P20,000 Costs Fixed P 2,000 P 5,600 Variable P 7,600 P6.000 P 3.000 P8,600 P 9.000 P 8,000 Income Before Taxes P16,600 P 2,000 P 1,400 P 3,400 1. What is the breakeven point in units and in sales for baubles? For trinkets?
2. Assuming that the facilities are not jointly used, what is the break-even output (in units) for baubles?
3. Assuming the sales mix given in the table, what is the composite unit contribution margin?
4. If baubles and trinkets become one-to-one complements and there is no change in the company's cost function, what is the composite break-even point in units?
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