Julia Company can produce two types of carpet cleaners, the Brighter and Smarter. The data on the two machines is as follows:

	Brighter	Smarter	Total
Sales units	200	300	500
Price	$ 750	$ 1,000
Sales	$ 150,000	$ 300,000	$ 450,000
Var cost	225	450

The number of machine-hours to produce Brighter is 1 and to produce Smarter is 2. Total fixed costs for the manufacture of both products are $132,000.

Required
Using a spreadsheet, determine the breakeven point for Julia Company, assuming that the sales mix remains constant in salesdollars.

Transcribed Image Text:

Julia Company can produce two types of carpet cleaners, the Brighter and Smarter. The data on the two machines is as follows: The number of machine-hours to produce Brighter is 1 and to produce Smarter is 2. Total fixed costs for the manufacture of both products are $132,000