Question
In: Accounting
Monica's Manufacturing produces three products: X, Y, and Z. It has fixed costs of $18,000. X...
Monica's Manufacturing produces three products: X, Y, and Z. It has fixed costs of $18,000.
| X | Y | Z | |
|---|---|---|---|
| Unit selling price | $100 | $130 | $210 |
| Unit variable costs | $60 | $30 | $180 |
| Labor-hours per unit | 4 | 5 | 3 |
a. What is the break-even point (in units) if Monica were to sell only product X?
b. What is the break-even point (in units) if Monica sells products X, Y, and Z according to the following sales-mix?
| X | Y | Z | |
|---|---|---|---|
| Sales Mix | 55% | 15% | 30% |
c. If Monica is limited to 195 labor-hours per week (its constraining factor), what product should it focus on making? (Show calculations to support your answer.)
d. What assumptions do you make in answering the previous question?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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X
Y
Z
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$64,000
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Y
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X
Y
Z
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$40
$75
Direct labor
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$35
$50
Machine hours
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1.5
3
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20,000
12,000
3,000
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Y
Z
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Direct labor
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Machine hours
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4
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