Determine the sales dollars of each product

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Question - The Gong Company produces and sells three types of jigsaws, variable speed (A) single speed (B) and variable speed with auto-scrolling (C) Budgeted data is given below:

Product

Sales Price

Variable cost Per Unit

Sales Mix as a Proportion of Total Sales $

A

$30

$15

.10

B

20

12

.50

C

40

30

.40

Budgeted total fixed costs are $700,000.

Required -

a. Calculate the break-even point in sales dollars for each product based on the budgeted sales mix.

b. Determine the sales dollars of each product needed to generate a budgeted after tax profit of $245,000. Assume a 50% tax rate.

c. Determine the sales dollars of each product needed to generate a 15% budgeted return on sales dollars after taxes.

Reference no: EM133099048

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