The following is budgeted information for the Sophia Corporation:
Product 1 Product 2
Annual production & sales 5,000 15,000
Projected selling price $24 $32
Direct Production Cost Information
Materials (per unit) $5 $7
Direct Labor (per unit) $8 $12
• Manufacturing overhead costs (a mixed cost) are budgeted to be $160,000 at the production and sales listed above. The fixed component is $100,000. Each product uses the same amount of variable manufacturing overhead per unit.
• Selling & administrative costs (a mixed cost) are budgeted to be $120,000 at the production and sales listed above. The variable component is $2 per unit (same for each product).
Assuming the budgeted sales mix remains intact, how many units of each product does Sophia need to sell in order to break even?
Recently Asked Questions
- Please use the cross product and dot product at least once each in solving this question
- Increasing the quantity of money in circulation shifts the: A.short-run aggregate supply curve to the right .B.long-run aggregate supply curve to the right.
- would you please help me with question 21 chapter 9 in solving the problem thank you for the help!