Bitcom Pte Ltd sells only 2 products - G and H and has made the following...

Bitcom Pte Ltd sells only 2 products - G and H and has made the following estimates for the coming year:

Product	Unit Selling Price	Unit Variable Cost	Sales Quantity
G	$30	$24	30,000
H	70	56	20,000

Fixed costs are estimated at $202,400.

Required:

What is the sales mix?
What is the estimated sales in units of the combined product necessary to reach the break-even point for the coming year?
What is the estimated number of units of each product necessary to be sold to reach the break-even point for the coming year?
Assume that the sales mix was 40% Product G and 60% Product H. Without any further calculation, compare the break-even point with that in part (b). Why is it different?
Support your answer in item d with computations of the change in the break-even point.

Solutions

Expert Solution

ekkarill92 answered 2 years ago

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