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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

 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. 

                                                   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%)                           

  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, can’t tell?).

   EXPLAIN.                                                                                                      


 

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Solution 1 Operating profit one month 17400 2 BEP in sales dollars 1291667 or 129167 rounded Working... blur-text-image

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