Question
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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