Question
Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi Witrox has determined that it would break even at an annual sales volume
Witrox Bhd sells two models of smartphone, the Oppo and the Xiaomi
Witrox has determined that it would break even at an annual sales volume of 50,000 units, of which 75% would be Oppo.
Required:
a) What is the sales mix?
income statement with operating income of RM500,000. Fixed production costs will increase RM45,000 and fixed administrative costs will increase RM22,500 to support the increase in volume.
b) Prepare a product line income statement with operating income of RM500,000. Fixed production costs will increase RM45,000 and fixed administrative costs will increase RM22,500 to support the increase in volume.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a To calculate the sales mix we need to determine the proportion of Oppo and Xiaomi smartphones in the total sales volume Given that the breakeven ann...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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