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SCORPION-xisa [38]
3 years ago
11

The following information is for the Jeffries​ Corporation: Product​ A: Revenue $ 17.00 Variable Cost $ 14.00 Product​ B: Revenu

e $ 28.00 Variable Cost $ 17.00 Total fixed costs $ 213,000 What is the breakeven​ point, assuming the sales mix consists of three units of Product A and one unit of Product B?
Business
1 answer:
Anit [1.1K]3 years ago
6 0

Answer:

42,600 units

Explanation:

For product A:

Contribution margin = Sales - Variable expenses

                                  = $17 - $14

                                  = $3

For product B:

Contribution margin = Sales - Variable expenses

                                  = $28 - $17

                                  = $11

Assume the current sales makes is one unit of Product A and one unit of Product B.

Current Total Contribution margin = ($3 × 1/2) + ($11 × 1/2)

                                                         = $7

Hence,

Current break-even = Fixed costs ÷ Contribution margin

                                  = $213,000 ÷ 7

                                 = 30,429 units

Now;

Assuming the sales mix consists of three units of Product A and one unit of Product B.

Contribution margin would be = ($3 × 3/4) + ($11 × 1/4)

                                                   = $5/unit

Hence,

Break-even = $213,000 ÷ 5

                   = 42,600 units

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Max works 40 hours per week as a tire store manager. If he made $25,480 last year, how much was he paid per hour?
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To figure this out, we need to write down some rules/formulas.
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Read more on price here: brainly.com/question/11898489

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