Problem

Multiple Products CVP Julia Company can produce two types of carpet cleaners, the Brighter...

Multiple Products CVP Julia Company can produce two types of carpet cleaners, the Brighter and Smarter. The data on the two machines is as follows:

 

Brighter

Smarter

Sales volume in units

200

300

Unit sales price

$750

$1,000

Unit variable cost

225

450

The number of machine-hours to produce Brighter is 1 and to produce Smarter is 2. Total fixed costs for the manufacture of both products are $132,000.

Required Using a spreadsheet, determine the breakeven point for Julia Company, assuming that the sales mix remains constant in sales dollars.

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