Determine break-even quantities for product line

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Reference no: EM132468669

team of consultants on a multi-year basis for a global washer and dryer manufacturer.

They currently offer two core washer and dryer sets: a high-end model and an economic model.

kindly see the information provided by management for the following revenue and cost information:

                           High-End Set                                               Economical Set

Sales price             $3,500 per unit                                     $1,000 per unit

Labor                    $875 per unit                                        $250 per unit

Materials                $1400 per unit                                      $300 per unit

Direct fixed costs    $25,000 per month                                 $ 16,500 per month

Allocated fixed costs $85,000 per month                                $85,000 per month

Question a) please teach me to have a better understanding of this business to make budgeting and sales goals decisions and

Question b) please help me to determine this

Break-even quantities for each product line
Break-even quantities to earn $500,000 per year margin on the high-end line (at the current sales price)
Break-even quantities to earn $300,000 per year margin on the economical line (at the current sales price)

Question c) please teach me because they expect the product lines to fully absorb the costs allocated to them.

Question d) please help me to present the information

Question e) help me to describe how to perform this calculations

Question f) kindly teach me on how to explain what the results mean

Reference no: EM132468669

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