Calculate the estimated break-even point in units

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Reference no: EM132521707

Sophiora Cosmetic Ltd produces two beauty products and provides the following information:

                              Skin-care                    Make-up

Selling price                 $130                   $100

Variable costs                $90                     $70

  • From the sales report of this period, the manager found that in average the company sells 40 units of Skin- care and 60 units of Make-up. The total fixed costs for the period are $51,000.

Required (show your working):

Question (a) Calculate the estimated break-even point in units and in sales dollars of the Skin-care.

Question (b) Calculate the estimated break-even point in units and in sales dollars of the Make-up.

Question (c) What is the operating profit when total sales of both products are 2500 units.

Reference no: EM132521707

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