Direct production cost information materials

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Reference no: EM131259673

The following is budgeted information for the Brendan Corporation: Product 1 Product 2 Annual production & sales 40,000 10,000 Projected selling price $60 $140 Direct Production Cost Information Materials (per unit) $12 $17 Direct Labor (per unit) $20 $40 Additional information: • Selling & administrative costs (a mixed cost) are budgeted to be $450,000 at the production and sales listed above. The variable component is $6 per unit (same for each product). • Manufacturing overhead costs (a mixed cost) are budgeted to be $725,000 at the production and sales listed above. The fixed component is $625,000. Each product uses the same amount of variable manufacturing overhead per unit. Assuming the budgeted sales mix remains intact, how many units of each product does Brendan need to sell in order to break even?

Reference no: EM131259673

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