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In: Accounting

Turner Inc. produces two products P1 and P2. The company has provided you with the following...

Turner Inc. produces two products P1 and P2. The company has provided you with the following information. Assume that the current sales volume of P1 and P2 reflects the long run sales mix of the firm.
P1 P2
Selling price per unit $30 $60
Variable cost per unit $10 $30
# of units sold 9,000 6,000
Total fixed costs $240,000
Select ALL statements that are TRUE. All numbers in the answer choices are rounded off to 2 decimals. Breakeven volume in units is rounded off to the next higher integer.
A.
The breakeven revenue for Turner equals $400,000 @ the given sales mix.
B.
Turner will breakeven when it sells 10,000 units @ the given sales mix.
C.
60% of Turner's revenue comes from P1
D.
The Margin of Safety for Turner at current operating level equals 33.33%
E.
Turner makes a contribution of $24 per unit on the average.

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ekkarill92 answered 2 years ago
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