Jax-O-lantern Company, Inc. produces two products, tower lights and tabletop lights. Use the data in the...

 

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Jax-O-lantern Company, Inc." produces two products, tower lights and tabletop lights. Use the data in the table below to answer the questions. Direct Material Direct Labor Overhead Fixed Costs Retail Price Cost of finished Tower Light products $50 $40 $96 $28 100000 Tabletop Light $22 Split based on direct Labor Cost $149 $22 $18 100000 $119 Requirements (Be sure to show all work) Provide detailed answers to each of these questions and show all calculations: 1. Calculate the breakeven point in units for each product. 2. The Company reduces its sales price from $149 per pair to $129 per unit. Calculate the new breakeven point in units. 3. The Company finds a new supplier for its material. Variable costs will decrease by $10 per unit. Calculate the new breakeven point in units. 4. The Company plans to advertise on social media. The advertising campaign will increase total fixed costs by $4,000 per month. Calculate the new breakeven point in units. Jax-O-lantern Company, Inc." produces two products, tower lights and tabletop lights. Use the data in the table below to answer the questions. Direct Material Direct Labor Overhead Fixed Costs Retail Price Cost of finished Tower Light products $50 $40 $96 $28 100000 Tabletop Light $22 Split based on direct Labor Cost $149 $22 $18 100000 $119 Requirements (Be sure to show all work) Provide detailed answers to each of these questions and show all calculations: 1. Calculate the breakeven point in units for each product. 2. The Company reduces its sales price from $149 per pair to $129 per unit. Calculate the new breakeven point in units. 3. The Company finds a new supplier for its material. Variable costs will decrease by $10 per unit. Calculate the new breakeven point in units. 4. The Company plans to advertise on social media. The advertising campaign will increase total fixed costs by $4,000 per month. Calculate the new breakeven point in units.

Answer rating: 100% (QA)

1 Calculate the breakeven point in units for each product Tower Light Sales Price 149 Direct Costs M... View the full answer