Question

JAG Radio Supply sells only two products, Product X and Product Y. Show ALL calculations to receive partial credit!! Total Selling price Variable cost per unit Total fixed costs Product Product Y $25 $45 $20 $35 $350,000 Required: (a) Calculate the breakeven point in units for each of the products assuming a 4:3 sales mix. [10 points) (b) Calculate the breakeven point in units for each of the products assuming a 3:4 sales mix. [11 points] (c) Assuming sales are greater than the breakeven number of units for each product, would the move from a 4:3 sales mix to a 3:4 sales mix result in an increase or decrease in operating profit? Why? [4 points]

Answer 1

X х Y у 45 S.P V.C.P 20 35 Total Fixed cost = 35000U Answer a) Brease even point Total Fixed Expenses weighted Aug sipa weighted Aug v. Expense 3 50000 BEP= (asx"+45**) -(oux + 358 7 3 50000 - 49020 units 33.57 - 26.43 to The company will have to sell 49020 units boreale even. Produel x = 490 do X = 28011 Produit y = 490 20 x 21009 3. 7

b) Sales Móx = 3:4 3 50000 ВЕР- (35x +45x) - (x + 35x4 ) 3 50000 - 44529 anots 7.86 Product x = 44529 x 3 = 19084 cents 7 44529x 4 zastres cinéts. 7 Produit y =