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A company sells three products abc def xyz in a 136 sales

Question - A company sells three products ABC, DEF & XYZ in a 1:3:6 sales mix.

Sales price: ABC - $10 DEF -12 XYZ - $10

Variable cost: ABC - $8 DEF - 6 XYZ - $5

Total quantity sold: 20,000 units

Fixed cost are $50,000

A) Calculate breakeven in total sales dollars and in units of ABC, DEF& XYZ.

B) What is the total income the company can earn with this sales mix? Say the sales mix changes from 1:3:6 to 6:3:1?

C) What is the breakeven point in sales dollars and units of each product?

D) What is the total income the company can earn with this sales mix?

E) Explain why the answers in parts A and B is different than in parts C and D?

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Accounting Basics: A company sells three products abc def xyz in a 136 sales

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Accounting Basics: A company sells three products abc def xyz in a 136 sales

Reference No:- TGS02529803

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