Calculate the revised break-even point

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Reference no: EM132105020

In 2018, LINA Sdn Bhd made a sale of $2,000,000 for three of its products X, Y, and Z with a sales mix of 50%, 20% and 30% respectively. The fixed cost is $ 30,000 per month.

Product X Y Z

Total cost/unit ($) 38 50 40

Fixed cost/unit 25% of total cost 20% of total cost 30% of total cost

Sales price/unit ($) 40 55 45 

Required:

a. Determine the company's break-even point (in sales value) and margin of safety (in sales value) for the year.

b. The projected sales for the following year for products X, Y, and Z are $800,000, $500,000 and $900,000 respectively. Calculate the revised break-even point (in sales value)

Reference no: EM132105020

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