MJ Ltd. Manufactures and sells four product lines - North, South, East and West. The sales mix
Question:
MJ Ltd. Manufactures and sells four product lines - North, South, East and West. The sales mix in terms of revenue comprises of the following:
Product Line Percentage
North 33.33%
South 41.67%
East 16.67%
West 8.33%
100%
Total budgeted monthly sales are set to be 600,000 units per month.
Variable costs information for the product lines is given below:
Product Line
North 60% of selling price
South 68% of selling price
East 80% of selling price
West 40% of selling price
Fixed cost per month amounts to $159,000.
Required: (i) Calculate the break-even for the products on an overall basis. State any necessary assumption(s) for your computations.
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett