Question

Required If total fixed cost at James Company is $1,095,000 and the sales mix remains constant, what is the number of units of product X that will be sold as part of the breakeven sales mix? 3) 2-36 Multiproduct breakeven analysis Brant Consulting designs costing and transfer pricing sys- tems for its clients. Here is a summary of volume, revenue and cost expectations for the upcom- ing year: COSTING PROJECTS TRANSFER PRICING PROJECTS FIRM ITEM PER UNIT 50 Joes PER UNIT 75 Joes TOTAL Revenue. $10.000 $500,000 $15,000 $1,125,000 $1,625,000 Variable cost. 4.500 225,000 11,500 862.500 1,087,500 Contribution margin $ 5,500 $275,000 $ 3,500 $ 262,500 $ 537,500 Fixed cost... 473.000 Profit 64,500

Answer 1

the computation of Break even forret of multiple products fixed Cost Break Even Point (in units Combined Contribution) Malgin Plo y fixed Cost = $ 1.095,000 $537500 > Contribution Margin Plu = $ 25000 .. Break Even Point (in units $ 1095,000 $21.5 = 50,930.25 (ov) 50,93 Dunits

b. Targled profit = $86,000 fred Cost + Taigted profit Pargted sales Combined Contibution ligin Mo $ 1095,000 + $86,000 $21.5 raigtud sales. = 51.930 urity Do get $86.000 poofike. Conjaray maintain Combined sales of 54, 950 units. Please do like., Happy Chugging.