Reference no: EM132536648

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.