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Taylor, Inc. produces only two products, Acdom and Belnom. These account for 60% and 40% of...

Taylor, Inc. produces only two products, Acdom and Belnom. These account for 60% and 40% of the total sales dollars of Taylor, respectively. The unit variable expense as a percentage of the selling price is 60% for Acdom and 85% for Belnom. Total fixed expenses are $150,000. There are no other costs.

Assuming that the total fixed expenses of Taylor increase by 30% and the sales mix remains constant, what amount of sales dollars would be necessary to generate a net operating income of $9,000?

Select one:

a. $464,000

b. $680,000

c. $214,286

d. $659,000

e. $204,000

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Answer #1

- first, we have to calculate composite contribution Margin, = 60% of (100% - 60%) + 40% of (100%-85%) 30%. Now, Break Even s

Thankyou........

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