Posted by Amy on .
A manufacturing Company produces 2 products – A and B.
The following information is presented for both products:
Selling Price per unit
Variable Cost per unit
Total Fixed Costs are $468,000.
The contribution margin for each product.
Break-even point in units of both A and B if the sales mix is 3 units of A for every unit of B.
Break-even volume in total dollars if the sales mix is 2 units of A for every 3 units of B.
Davis Manufacturing gathered the following information:
Variable Costs $630,000
Income Tax Rate 40%
Contribution Margin Ratio 30%
Compute total fixed costs assuming a break-even volume in dollars of $900,000.
Compute sales volume in dollars to produce an after-tax net income of $72,000.