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Unformatted text preview: consider. Changes in the sales-mix causes change in the companys profits. For example if the sales-mix increases in the sale of more high margin items and the same level of low margin items profits will increase. An increase in low margin items would also cause profits to increase but it would not be as dramatic as that of an increase in high margin items. Definitions Conrad Cookwares Peoria factory produces a kitchen set and a pots and pans set. Both of these products are good sellers, but their profit margins are quite different. Find the break-even point for the Peoria factory and the break-even sales for both products. Problem Break-even point in sales: Fixed Expenses = 9,000 = $15,000 Overall CM ratio 0.60 Check the work. .. Solution...
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This note was uploaded on 04/21/2011 for the course ACTG 211 taught by Professor Galvan during the Spring '11 term at Finger Lakes Community College.
- Spring '11
- Managerial Accounting