Question
The following monthly budgeted data are available for the International Company: Product A Product B Product C Sales $500,000 $300,000 $900,000 Variable expenses 300,000 210,000
The following monthly budgeted data are available for the International Company: Product A Product B Product C Sales $500,000 $300,000 $900,000 Variable expenses 300,000 210,000 714,000. The budget assumes the sale of 20,000 units of A, 45,000 units of B, and 37,200 units of C with fixed expenses of $250,000. Required to clearly answer all questions and show all work for full marks: a) What is the companys break-even point in dollars given the sales mix above? b) If the budgeted sales mix is maintained, what is the total contribution margin and operating income if 150,000 units are sold? (round sales mix % to nearest tenth)
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