Question

EB11.

Answer 1

Complete Question is as under:

JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follow:

PRODUCTS              Selling Price Per Unit            Variable Cost Per Unit

TRUNK SWITCH                  $60                                        $28

GAS DOOR SWITCH           $75                                         $33

GLOVE BOX LIGHT             $40                                         $22

Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are 18,840.

Requirement 1: How many units of each product will need to be sold in order for JJ to break even?

Requirement 2: Use the information from the previous exercises involving JJ Manufacturing to determine their break-even point in sales dollars.

Kindly Find the Solution in the attachment.