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THREE-10 marks Olympic Corporation produces and sells two products A-line and Graphic. The information for the 2 products for one month is: A-line Graphic Selling
THREE-10 marks Olympic Corporation produces and sells two products A-line and Graphic. The information for the 2 products for one month is: A-line Graphic Selling Price per Unit $150 $ 165 Variable Production Costs per unit $120 $ 126 Variable Selling Expense per Unit $ 16 $ 13 Expected Monthly Sales in Units 1,200 600 Total Monthly Fixed Cost $15,000 i) Calculate the operating income for the company for one month. (5 marks) A-line Graphic Olympic Co ii) Given the above sales mix, calculate the break-even point in sales dollars. Use 1 decimal place if necessary (ie. 99.9%) (2 marks) 5 iii) If the expected monthly sales in units were divided equally between the two models (900 of each product), where would the break-even level of sales be compared to the expected sales mix above 2 (higher, lower, the same, can't tell?). EXPLAIN
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