XYZ Company produces and sells AAA batteries. The company faces financial difficulties and must decide to...

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XYZ Company produces and sells AAA batteries. The company faces financial difficulties and must decide to shut down one of its branches. data for the branch follows: Branch A Sales Volume 10,000 units Sales price per unit $10 Variable cost/unit Fixed Costs (in year) $4 $40,000 Branch B 10,000 units $10 $6 $20,000 Required: 1. Prepare a schedule showing management the total revenue, total cost, and total profit or loss for each branch.? (5 Marks) 2. Which branch do you recommend to the management to shut down? Explain your answer 3. Calculate break break-even point for each branch? (10 Marks) (5 Marks) XYZ Company produces and sells AAA batteries. The company faces financial difficulties and must decide to shut down one of its branches. data for the branch follows: Branch A Sales Volume 10,000 units Sales price per unit $10 Variable cost/unit Fixed Costs (in year) $4 $40,000 Branch B 10,000 units $10 $6 $20,000 Required: 1. Prepare a schedule showing management the total revenue, total cost, and total profit or loss for each branch.? (5 Marks) 2. Which branch do you recommend to the management to shut down? Explain your answer 3. Calculate break break-even point for each branch? (10 Marks) (5 Marks)

Answer rating: 100% (QA)

Revenue will be Sales Volume Sales price per unit Profit can be computed as Total Revenue Total Cost ... View the full answer