IV$.$ Trans Corp. produces and sells two models of cellphones coded COM$1$ and COM$2.$ Some financial information for the products are respectively; sale prices $$220$ and $$500$; sale quantities $60\mathrm{.}000$ pcs$.$ and $40\mathrm{.}000$ pcs$.$ Fixed costs of the corporation are $$5\mathrm{.}803\mathrm{.}200.$ Unit costs estimation for the models are as follows;

COMI

COM$2$

Direct Material

$$30$

$$140$

Direct Labor

$$20$

$$110$

Variable MO

$$10$

$$75$

Variable Marketing Exp.

$$10$

$$10$

Questions:

$1.$ Compute the BEP in quantity of the sale mix.

$2.$ Compute the profit to get if all the goods may be

sold.

$3.$ Compute the sale price of each model in order to get a profit of $$13,000,000$ and verify with the income statement.

Answer rating: 100% (QA)

1 Compute the BreakEven Point BEP in quantity of the sale mix The BreakEven Point is the quantity at which total revenue equals total costs To calcula... View the full answer