Olympic Corporation produces and sells two products A-line and Graphic. The information for the 2 products for one month is:

	A-line		Graphic
Selling Price per Unit	$150		$   165
Variable Production Costs per unit	$120		$   126
Variable Selling Expense per Unit	$  16		$     13
Expected Monthly Sales in Units	1,200		600
Total Monthly Fixed Cost		$15,000

Calculate the operating income for the company for one month. 

                                                   A-line                              Graphic                    Olympic Co

Given the above sales mix, calculate the break-even point in sales dollars.

     Use 1 decimal place if necessary (ie. 99.9%)                           

  If the expected monthly sales in units were divided equally between the two models (900 of each product), where would the break-even level of sales be

                 compared to the expected sales mix above? (higher, lower, the same, can’t tell?).

   EXPLAIN.                                                                                                      

 

Answer rating: 100% (QA)

Solution 1 Operating profit one month 17400 2 BEP in sales dollars 1291667 or 129167 rounded Working... View the full answer