Puleva S.A. of Madrid Spain, manufactures and sells 2 products of luxury finished cutlery – A and B. Current monthly sales and cost information is provided below for each case:

	A	B
Selling price per unit	400	600
	240	120
	200	80

Fixed expenses are $66,000 per month.

Required: The company has just introduced a new product, Cano, that the company plans to sell for $800 per case. The variable cost of production is expected to be $600, and expectations are for sales of 40 cases per month. The fixed expenses are not expected to increase. Compute the company’s new break-even point as a whole and prepare a new contribution margin income statement for each product and the total company sales.

Answer rating: 100% (QA)

Step 12 Step 1 Description and introducton The question has asked to compute the breakeven point and ... View the full answer