Question
XYZ Company annually sells 30,000 units with a sales mix of 2:3:5: for product A , product B and product C.Product A sells for $10
XYZ Company annually sells 30,000 units with a sales mix of 2:3:5: for product A , product B and product C.Product A sells for $10 and costs $5 to manufacture.Product B sells for $10 and costs $4 to manufacture. Product C sells for $6 and has a variable cost of $3. Fixed costs are $40,000
a) 5%- What is the net income with this sales mix
b)6% - How many units each of A, B and C must be sold for the company to breakeven?
c) 6% - How would your answer change if the sales mix was 4:2:4; of A,B,C?
d) 2% - What would you recommend to management about the sales mix of product A & B and C
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