question 21 the following information is for winnie company : product A revenue $4 variable cost...
question 21
the following information is for winnie company :
product A revenue $4
variable cost $1
product B revenue $6
variable cost $2
fixed cost 40000
what is the operating income assuming actual sales are 300000 units,and the sales mix is one unit of product A and two units in product B ?
Homework Answers
| Product A | Product B | Total | |
| Sales mix ratio | 1 | 2 | |
| Units sold | 100000 | 200000 | 300000 |
| Price per unit | $ 4.00 | $ 6.00 | |
| Variable cost per unit | $ 1.00 | $ 2.00 | |
| INCOME STATEMENT: | |||
| Sales revenue | $ 4,00,000 | $ 12,00,000 | $ 16,00,000 |
| Less: Variable cost | $ 1,00,000 | $ 4,00,000 | $ 5,00,000 |
| Contribution margin | $ 3,00,000 | $ 8,00,000 | $ 11,00,000 |
| Less: Fixed cost | $ 40,000 | ||
| Operating income | $ 10,60,000 |
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