Question
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.
Step by Step Solution
3.36 Rating (159 Votes )
There are 3 Steps involved in it
Step: 1
Solution 1 Operating profit one month 17400 2 BEP in sales dollars 1291667 or 129167 rounded Working...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started