Calculate the break-even sales revenue per period

Assignment Help Accounting Basics
Reference no: EM131627028

Question: A company produces and sells two products with the following costs:

                                               Product X                   Product Y

Variables costs (per £ of sales)        £0.45                        £0.60

Fixed costs                                  £1,212,000 per period

Total sales revenue is currently generated by the two products in the following proportions:

Product X             70%

Product Y             30%

Required: (a) Calculate the break-even sales revenue per period, based on the sales mix assumed above.

(b) Prepare a profit volume chart of the above situation for sales revenue up to £4,000,000. Show on the same chart the effect of a change in the sales mix to Product X 50%, Product Y 50%. Clearly lindicate on the chart the break-even point for each situation.

(c) Of the fixed costs £455.000 are attributable to Product X. Calculate the sales revenue required on Product X in order to recover the attributable fixed costs and provide a net contribution of £700.000 towards general fixed costs and profit.

Reference no: EM131627028

Questions Cloud

What would you call those types of costs : What would you call those types of costs? Which ones are variable? Which ones are fixed? How would we use those costs to create a break even point?
Characteristics of leadership to both your work : Describe the manner in which you apply the key characteristics of leadership to both your work and personal life.
Discuss iconic performer johnny cash transform : This song was written and originally performed by Nine Inch Nails and refers to young people who cut themselves
Consumer-driven long-term care system : What is meant by consumer- Driven long- term care system?
Calculate the break-even sales revenue per period : Calculate the break-even sales revenue per period, based on the sales mix assumed above.
Discuss the possible sources of bias and inaccuracy : Discuss the possible sources of bias and inaccuracy whenever a person looks back on their past history. Be sure to discuss factors related to memory and factor.
Competitive work methodology ensure successful crm : Can an internal competitive work methodology ensure successful CRM?
The culture in which we live determines our happiness : List three (3) ways that the culture in which we live determines our happiness.
Is the wacc set by investors or by managers : Why is it important to estimate a firm's cost of capital? What does it represent? Is the WACC set by investors or by managers?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Did vallejos net income as a percent of sales increase

Did Vallejo's net income as a percent of sales increase, decrease, or remain unchanged over the 3-year period? Provide numerical support for your answer.

  Knowing that the companys former cfo and ceo not only got

knowing that the companys former cfo and ceo not only got in trouble for fiduciary responsibility violations but irs

  What conclusions can be drawn from these data concerning

What conclusions can be drawn from these data concerning the inventories?

  Justification for an internal control system

Individual Assignment: Justification for an Internal Control System Leadership confronts you as a controller and questions the need for an internal control system.

  Why are consumers generally more concerned with business

Why are consumers and the public generally more concerned with ethical and socially responsible business behavior today than they were, say, fifty years ago?

  Levi company purchased land on february 1 2014 at a cost of

levi company purchased land on february 1 2014 at a cost of 5000000. it estimated that a total of 50000 tons of ore is

  Discuss the accounting treatment or disclosure

Discuss the accounting treatment or disclosure that should be accorded a declared but unpaid cash dividend; an accumulated but undeclared dividend on cumulative preferred stock; a stock dividend distributable.

  What is the ending balance of goods in process inventory

"The production department started the month with the beginning goods in process inventory of $350,000. During the month, it was assigned the following costs: direct materials, $192,000; direct labor, $90,000; overhead applied at the rate of 30% o..

  Molina company has beginning and ending work in process

molina company has beginning and ending work in process inventories of 130000 and 145000 respectively. if total

  Prepare the journal entries to record the issue of the bonds

Prepare the journal entries to record the issue of the bonds on January 1, 2013, and the interest payments on June 30, 2013, December 31, 2013

  What is the break-even sales volume

What is the break-even sales volume (in dollars) on product no. 766? Which of the two products will be more profitable at a sales level of 20,000 units?

  Prepare a pension worksheet presenting both years 2008 and

p20-8 comprehensive 2-year worksheet glesen company sponsors a defined benefit pension plan for its employees. the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd