A company sells two products, Product A and Product B. The company's cost structure is as follows:
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A company sells two products, Product A and Product B. The company's cost structure is as follows:
- Product A: variable cost per unit = $10; fixed costs = $20,000
- Product B: variable cost per unit = $8; fixed costs = $30,000
The selling price for both products is $25 per unit. If the company expects to sell 4,000 units of Product A and 6,000 units of Product B, what is the company's breakeven point in terms of units and dollars? Also, what is the company's margin of safety in units and dollars?
Related Book For
Pricing Strategies A Marketing approach
ISBN: 978-1412964746
1st edition
Authors: Robert M. Schindler
Posted Date: