A company sells three products X, Y and Z. In 2019 the quantity sold, sales revenue,...
- A company sells three products X, Y and Z. In 2019 the quantity sold, sales revenue, total variable costs products were:
|
Products |
|||
|
X |
Y |
Z |
|
|
Quantity |
8,000 |
9,000 |
13,000 |
|
Sales Revenue |
1,200,000 |
630,000 |
1,300,000 |
|
Variable cost |
640,000 |
360,000 |
780,000 |
Fixed costs were $405,000.
Required: (350 words)
- Compute the breakeven sales (units). Prove your answer.
- Calculate the sales (in units) required to earn a target profit $607,500. Prove your answer.
- Calculate the reduction needed in the fixed costs to break even at 4,500 units, in case the selling price increased by 20% and the variable cost increased by 10% for the three products.
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