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TOP URGENT PLZ Olympic Corporation produces and sells two products A-line and Graphic. The information for the 2 products for one month is: A-line Graphic

TOP URGENT PLZ

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

Calculate the operating income for the company for one month. (5 marks)

A-line Graphic Olympic Co

Given the above sales mix, calculate the break-even point in sales dollars.

Use 1 decimal place if necessary (ie. 99.9%) (2 marks)

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 ? (higher, lower, the same, cant tell?).

EXPLAIN. (3 marks)

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