Abilene Industries manufactures and sells three products (XX, YY, and ZZ). The sales price and unit variable
Question:
Abilene Industries manufactures and sells three products (XX, YY, and ZZ). The sales price and unit variable cost for the three products are as follows:
Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345,000 per year.
A. What are total variable costs for Abilene with their current product mix?
B. Calculate the number of units of each product that will need to be sold in order for Abilene to break even.
C. What is their break-even point in sales dollars?
D. Using an income statement format, prove that this is the break-even point.
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Step by Step Answer:
To answer the questions well first need to calculate some values based on the provided information Given data Sales mix ratio XXYYZZ 421 Unit variable cost 45 25 15 for products XX YY ZZ respectively ...View the full answer
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Principles Of Accounting Volume 2 Managerial Accounting
ISBN: 9780357364802
1st Edition
Authors: OpenStax
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