In: Accounting
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.