MJ Ltd. Manufactures and sells four product lines - North, South, East and West. The sales mix in terms of revenue comprises of the following: 

Product Line Percentage 

North 33.33% 

South 41.67% 

East 16.67% 

West 8.33% 

100% 

Total budgeted monthly sales are set to be 600,000 units per month. 

Variable costs information for the product lines is given below: 

Product Line 

North 60% of selling price 

South 68% of selling price 

East 80% of selling price 

West 40% of selling price 

Fixed cost per month amounts to $159,000. 

Required: (i) Calculate the break-even for the products on an overall basis. State any necessary assumption(s) for your computations.

Answer rating: 100% (QA)

To calculate the overall breakeven point for the products on an overall basis we need to consider th... View the full answer