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Calculate break-even for the products on an overall basis

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Question - MJ Ltd. Manufactures and sells four product lines - North, South, East and West. The sales mix in terms of revenue comprises of the following:

Product Line Percentage

North 33.33%

South 41.67%

East 16.67%

West 8.33%

100%

Total budgeted monthly sales are set to be 600,000 units per month.

Variable costs information for the product lines is given below:

Product Line

North 60% of selling price

South 68% of selling price

East 80% of selling price

West 40% of selling price

Fixed cost per month amounts to $159,000.

Required: (i) Calculate the break-even for the products on an overall basis. State any necessary assumption(s) for your computations.

Reference no: EM132497496

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