Reference no: EM132593752
Question 1: Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $26,560 and variable expenses of $7,968. Product Y45E had sales of $23,000 and variable expenses of $11,500. The fixed expenses of the entire company were $21,800. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, what would happen to the overall break-even point for the entire company?
Question 2: Bristo Corporation has sales of 1,200 units at $50 per unit. Variable expenses are 30% of the selling price. If total fixed expenses are $32,000, what is the degree of operating leverage?
Question 3: If there were no beginning or ending inventories. What is the absorption costing per unit?
Number of units produced 7,000
Variable costs per unit:
Direct materials $87
Direct labor $75
Variable manufacturing overhead $5
Variable selling and administrative expense $10
Fixed costs:
Fixed manufacturing overhead $273,000
Fixed selling and administrative expense $497,000
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: Sales of 1,200 units at $50 per unit. Variable expenses are 30% of selling price. If total fixed expenses are $32,000, what is the degree of operating leverage
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