Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following to answer the next 2 questions: Can explain the answers step by step Gentry, Inc. sells only two products, Product A and

Use the following to answer the next 2 questions: Can explain the answers step by step

Gentry, Inc. sells only two products, Product A and Product B. The following data relate to expected sales for the coming period:

Product A Product B

Sales units 20,000 30,000

Sales revenue $240,000 $300,000

Variable costs $140,000 $120,000

Fixed costs $89,168 $73,820

  1. How many units of each product are needed for Gentry to breakeven at the given sales mix? (Do not round relevant intermediate calculations, such as percentages).
  2. Given their current operating income, by approximately what percentage will Gentrys profits increase if sales increase by 1.50%? (Round final answer in percentages to 2 decimal places)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using QuickBooks Online For Accounting 2021

Authors: Glenn Owen

4th Edition

0357442164, 9780357442166

More Books

Students also viewed these Accounting questions