Techno Max Company is an automobile spare parts company which produces Brake shoes and Brake Drum....
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Techno Max Company is an automobile spare parts company which produces Brake shoes and Brake Drum. For the year 2019 following information is provided, Brake Shoe Brake Drum Selling price per unit $46 $36 Variable cost per unit $38 $24 Techno Max Company wants to achieve a sales target of 21,000 units of Brake Shoe and 7,000 units of Brake Drum. Total fixed costs are $234,000 You are required to compute: a. Contribution margin for each product. b. Current net income. Break-even point in units of both Brake Shoes and Brake Drum if the sales mix is 3 units of Brake Shoe for every single unit of Brake Drum. d. Break-even volume in total dollars if the sales mix is 2 units of Brake Shoe for every 3 units of Brake C. Drum. Find the number of units to be sold for both the products if the company wants to make a profit of e. $50,000 for Brake Shoe and 75,000 for Brake Drum, using the Equation method. Divide the fixed cost equally for both the products. Techno Max Company is an automobile spare parts company which produces Brake shoes and Brake Drum. For the year 2019 following information is provided, Brake Shoe Brake Drum Selling price per unit $46 $36 Variable cost per unit $38 $24 Techno Max Company wants to achieve a sales target of 21,000 units of Brake Shoe and 7,000 units of Brake Drum. Total fixed costs are $234,000 You are required to compute: a. Contribution margin for each product. b. Current net income. Break-even point in units of both Brake Shoes and Brake Drum if the sales mix is 3 units of Brake Shoe for every single unit of Brake Drum. d. Break-even volume in total dollars if the sales mix is 2 units of Brake Shoe for every 3 units of Brake C. Drum. Find the number of units to be sold for both the products if the company wants to make a profit of e. $50,000 for Brake Shoe and 75,000 for Brake Drum, using the Equation method. Divide the fixed cost equally for both the products.
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Related Book For
Fundamentals of Thermodynamics
ISBN: 978-0471152323
6th edition
Authors: Richard E. Sonntag, Claus Borgnakke, Gordon J. Van Wylen
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