Solution-What is the new proposed break-even point in sales

What is the new proposed break-even point in sales dollars

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Reference no: EM132549382

Using the information provided below, calculate the break-even in sales dollars.

Product K Product L Combined

Amount Per unit Amount per unit Amount

Sales Revenue $1,725,000 $7.50 $1,600,000 $0.80 $3,325,000

Variable Expenses $713,000 $3.10 $1,300,000 $0.65 $2,013,000

Contribution $1,012,000 $4.40 $300,000 $0.15 $1,312,000

Fixed Expenses $500,000

Net Income $812,000

The owners are considering a change in the product mix. They plan to decrease sales of Product K by 30,000 units and increase sales of Product L by 200,000 units. This change will NOT effect the Fixed Expenses.

Question 1. Redo the combined statement to reflect this proposed change.

Question 2. What is the new proposed break-even point in sales dollars?

Reference no: EM132549382

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What is the new proposed break-even point in sales dollars

Reference no: EM132549382

Reference no: EM132549382

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