Determine the break-even point in units for the company

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Question - Diamond Company manufactures two products. Information about the two products is as follows:

 

Product Alpha

Product Beta

Selling price per unit

$70

$100

Variable manufacturing costs per unit

26

32

Variable selling costs per unit

4

8

The company expects annual fixed manufacturing costs to be $120,200 and fixed selling costs to be $71,800. The company's normal annual total sales are 14,000 units, of those 8,400 have been Product Alpha and the remainder are Product Beta.

Required -

1. Determine the break-even point in units for the company's Products (i.e. show number of units for each product: Alpha and Beta).

2. Determine the level of sales (in dollars) necessary to generate an operating income of $42,160.

Reference no: EM133053576

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