Julia Company can produce two types of carpet cleaners, the Brighter and Smarter. The data on the
Question:
Julia Company can produce two types of carpet cleaners, the Brighter and Smarter. The data on the two machines is as follows:
Brighter | Smarter | Total | |
Sales units | 200 | 300 | 500 |
Price | $ 750 | $ 1,000 | |
Sales | $ 150,000 | $ 300,000 | $ 450,000 |
Var 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 salesdollars.
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Julia Company can produce two types of carpet cleaners, the Brighter and Smarter. The data on the two machines is as follows: 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
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The sales revenues for Brighter and Smarter are 150000200 x 750 ...View the full answer
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Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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