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  • 1.  Can any one help me on this ?

    Posted 05-06-2023 09:32 AM

    A company with $280,000 of fixed costs has the following data:

      Product A Product B
    Sales price per unit $5 $6
    Variable costs per unit $3 $5

    Assume three units of A are sold for each unit of B sold. How much will sales be in dollars of product B at the breakeven point?



    ------------------------------
    Rajesh Kumar
    Accountant
    Koderma
    India
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  • 2.  RE: Can any one help me on this ?

    Posted 05-06-2023 11:44 PM

    280000 unit 



    ------------------------------
    MOSTAFA ADEL KALAAF ABDALATEF
    Accountant
    Jeddah
    Saudi Arabia
    ------------------------------



  • 3.  RE: Can any one help me on this ?

    Posted 05-07-2023 04:23 AM
    FC/CM  280000/6-5 = 280000 UNIT 



    Original Message


  • 4.  RE: Can any one help me on this ?

    Posted 05-07-2023 01:36 AM
    Hi,

    You can refer solution as below.

    Call "y" as sales volume of item B at break event point => it mean sales volume of item A will be 3y

    VGM of A: (5-3)=2/unit
    VGM of B: (6-5)=1/unit

    So with sales volume of B is "y" and itA is "3y", total VGM will be: VGM A + VGM B= 2*3y + 1*y=7y
    At break even point mean total VGM = total fixed cost

    <=> 7y = 280.000
    => y = 40.000 unit 





  • 5.  RE: Can any one help me on this ?

    Posted 05-07-2023 01:56 AM
    FC = 280,000
    BEP profit= 0
    So CM also = 280,000

    One unit of sale A & 3 unit sale of B
    Sales unit= "X"

    Cm = (sales unit x sellingprice)-(sales unit x        variable cost) = 280,000

        A=("X"*3x5) - ("X"*3x3) +.     (*3 is 1A=3B)
        B=("X" x 6) - ("X" x 5)

    15x - 9x + 6x - 5x =280,000
    Finally.   X= 40,000

    Ans: doller unit of sale B
                   =40,000*6 = 240,000







  • 6.  RE: Can any one help me on this ?

    Posted 05-08-2023 12:43 AM

    Contribution margin for A is 2 (5-3) B is 1 (6-5)
    The sales mix A 3 unit B 1 unit so the percentage is 3/4 75% A 1/4 25 % B 

    Fixed COST  280,000/ 2x.75 + 1x .25 
    280,000/1.75  = 160,000 
    For B 160,000X .25 = 40,000



    ------------------------------
    NISHAD CHENDRATH BHASKARAN
    ------------------------------

    Original Message


  • 7.  RE: Can any one help me on this ?

    Posted 05-07-2023 10:35 AM

    sales be in dollars of product B at the breakeven point? 
    BEP units for Product B is 40,000 and accordingly the BEP sales for product B is $240,000 (i.e, 40,000 units X$ 6)
    Fixed cost / Contribution margin for the product mix 
    = $280,000/ 7x [ ie Product A = 3times X2 = $6x  and Product B= 1x] 
    x= $280000/7 = 40,000 units of Product B



    ------------------------------
    Kishore Kumar Natakala
    Other
    BENGALURU
    India
    ------------------------------



  • 8.  RE: Can any one help me on this ?

    Posted 05-08-2023 05:06 AM
    Unit CM of A = 5-3=2
    Unit CM of B = 6-5= 1
     Weighted Avg CM/unit = 3/4 (2) + 1/4 (1)= 7/4
    BE (total nbr of units) = FC/ WACM per unit
    = 280,000/(7/4) = 160,000 units in total

    For product B, BE units= 160,000 * (1/4) = 40,000






  • 9.  RE: Can any one help me on this ?

    Posted 05-08-2023 05:22 AM

    Already have the answer in previous reply



    ------------------------------
    NISHAD CHENDRATH BHASKARAN
    ------------------------------

    Original Message


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