Question: Please help with this accounting question. Will be sure to leave a review. Thank you in advance! The York Company produces Dirt bikes (Y1) and
The York Company produces Dirt bikes (Y1) and Road bikes (Y2) as follows: Variable Cost Per Unit S80 160 Budgeted Mix in Units 80% 20% Product Sales Price $200 400 Y1 ed costs amount to $388,800 which represents $238,800 fixed manufacturing overhead Total fix and $150,000 fixed selling and administrative expenses. Required: Determine the number of units of each product the company needs to produce and sell to break-even, assuming that unit sales are in proportion to the budget a. ed mix. b.. Determine the number of units of each product needed to generate a 20% return on sales dollars after taxes. Again assume a tax rate of 40 percent and that sales are in proportion to the budgeted mix. c. If the company is going to spend 200,000 on additional advertising, what level of sales in units of each product must be achieved in order to justify the expenditure
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