Nevada Company manufactures two products, L and M. L sells for $20 and M for $15. Variable

Question:

Nevada Company manufactures two products, L and M. L sells for $20 and M for $15. Variable costs per unit are $12 and $10 for L and M, respectively. Total fixed cost is $372,000. Management has targeted profit for the coming period at $93,000. Two units of L are expected to sell for every three units of M sold during the period.
Required:
Compute the following:
(1) The break-even point in units of product and in sales dollars
(2) The level of sales in units of product and dollars necessary to achieve the profit goal
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting

ISBN: 978-0759338098

14th edition

Authors: William K. Carter

Question Posted: