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Unformatted text preview: company’s break-even point. 2 ACCT 2200 7.4 Lee Co. has two products regular and luxury. Historical records show that the company always
sells the two products at a constant mix around 2:1; i.e. for every two units of regular sold, the
company will sell one unit of luxury. Price and cost information is as follows:
Variable cost per unit ($)
The company has total fixed costs $180,000. What is the break-even sales quantity for each product?
Break-even sales Quantity
0 = 24L + 30L - 180,000 - 16L - 20L
0 = 18L -180,000
Luxury = 10,000 units
Regular = 20,000 units 7.5 Brad’s Bicycle Shop sells 21- speed bicycles. For purposes of a cost-volume-profit analysis, the
shop owner has divided sales into two categories, as follows:
SALES PRICE INVOICE COST
270 SALES CO...
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This document was uploaded on 02/03/2014.
- Fall '13