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vThe Forever2 Company makes two products, A and B. The details on sales mix and costs and revenue appear below: The Sales Mix is 1
vThe Forever2 Company makes two products, A and B. The details on sales mix and costs and revenue appear below: The Sales Mix is 1 unit of A and 4 units of B. The income statement for the current sales volume is below: Required: a. Determine the breakeven point in units and revenue. b. Create a Cost Volume Profit chart. c. Repeat parts a and b if the sales mix changes so that 2 units of A are sold for every 3 units of B. d. Consider part c. What is the name of the type of analysis used in part c? What CVP issues does this analytical method address? How else could this method be used to improve decisions
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