Reference no: EM132536753

Danish Enterprises is a renowned manufacturer of models equipment. Company currently producing two types of models, one for military use and other for commercial market. Management of the company has tasked management accountant to perform various calculations to understand business operations in detail.

For the last financial year company's operational data has been produced as below.

                                         Military model                    Commercial model

Units produced and sold                   1,000                        4,000

Unit selling price                              4,000                         2,500

Component cost                             1,500,000                  1,000,000

Assembly labor                                  700,000                    500,000

Electricity                                          400,000                    200,000

Material handling ( All variable)                    200,000                   100,000

Supplies (All variable )                             100,000                      50,000

Shipping (All variable)                              150,000                       150,000

Other common fixed costs are as under:-

Factory rent 150,000

Factory depreciation 50,000

Factory salaries 400,000

Miscellaneous selling cost 300,000

Miscellaneous admin cost 200,000

Required:

Question 1: What is the composite breakeven point of the company in units and amount at the given sales mix? Calculate individual units and amount also.