Units of each product that would be sold at break-even point

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Reference no: EM13793479

The sales manager of Jorgensen Sales will be making different versions of their products. The sales department fells that 70% of units sold will be original product, 20% will be new model #1 and the remainder will be new model #2.

Original. Model1. Model2

Sales price

Per unit. $50 $35 $25

Materials cost. 22.50 15 10

Direct Labor. 10 7.50 5

Variable over head 7 5.25 3.50

(A) determine the number of units of each product that would be sold at the break-even point.

(B) determine the breakeven point if the sales estimates are instead 50% original product, 30% model #1, and the remainder model #2.

Reference no: EM13793479

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