Question: 10. MULTIPLE PRODUCT BREAKEVEN POINT. Angus Manufacturing makes basic tools for sale in hardware stores across the country. It is a successful business, with the

 10. MULTIPLE PRODUCT BREAKEVEN POINT. Angus Manufacturing makes basic tools for

10. MULTIPLE PRODUCT BREAKEVEN POINT. Angus Manufacturing makes basic tools for sale in hardware stores across the country. It is a successful business, with the following unit sales in a month. It faces fixed costs of $225,000 per month. Angus wants you to help him understand how his product mix affects his business. Angus Manufacturing Price per Unit Variable Cost per Unit Product Units Sold Hammers Socket wrenches Plain screwdriver Phillips-head screwdriver Pliers $10 $7.50 25,000 $25 $15.00 10,000 $8 $6.40 10,000 $8 $6.40 5,000 $10 $7.50 25,000 REQUIRED: a. What is Angus's product mix? Base this on Phillips-head screwdrivers. b. What is Angus's package contribution margin? C. Perform a multiproduct breakeven for Angus Manufacturing. How many of each type of product does he need to sell in order to break even? d. What is Angus's current profit for the business? e. What is Angus's current margin of safety in terms of revenue dollars? f. Angus wants to make $100,000 per month before taxes. How many units of each type of product does the company need to sell now? What is its required reve- nue dollars of sales

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!