MultiFrame Company has the following revenue and cost budgets for the two products it sells: Sales...

 

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MultiFrame Company has the following revenue and cost budgets for the two products it sells: Sales price Direct materials Direct labor Plastic Frames $10.00 2.00 3.00 Glass Frames $15.00 3.00 5.00 Budgeted unit sales 100,000 300,000 The total fixed overhead for the year is budgeted at $975,000. Assume that the company plans to maintain the same proportional sales mix. Required: a. Compute the sales mix between Plastic Frames and Glass Frames. b. Determine the number of units MultiFrame needs to produce and sell to breakeven. c. Determine the number of units MultiFrame needs to sell of each product (Plastic Frames and Glass Frames) to breakeven. d. Determine breakeven point in dollars of sales per product and in total. MultiFrame Company has the following revenue and cost budgets for the two products it sells: Sales price Direct materials Direct labor Plastic Frames $10.00 2.00 3.00 Glass Frames $15.00 3.00 5.00 Budgeted unit sales 100,000 300,000 The total fixed overhead for the year is budgeted at $975,000. Assume that the company plans to maintain the same proportional sales mix. Required: a. Compute the sales mix between Plastic Frames and Glass Frames. b. Determine the number of units MultiFrame needs to produce and sell to breakeven. c. Determine the number of units MultiFrame needs to sell of each product (Plastic Frames and Glass Frames) to breakeven. d. Determine breakeven point in dollars of sales per product and in total.

Answer rating: 100% (QA)

a The sales mix between Plastic Frames and Glass Frames can be calculated as follows Plastic Frames ... View the full answer