Calculate an amount of revenue to generate a target level

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Reference no: EM133146061

Question - Company Z produces Product X and Product Y. Fixed overhead costs amount to $ 200,000 every year. The following budgeted information is available for both products for next year:

 

Product X

Product Y

Sales Price

$50

$60

Variable Cost

$30

$45

Budgeted Sales (in units)

20,000

10,000

Required -

1. Calculate breakeven revenue for the next year.

2. Calculate an amount of revenue to generate a target level of profit of $ 15,000. Income taxes could be disregarded.

Reference no: EM133146061

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