A Leading manufacturer of Action Figures is about to introduce four new Action Figures. The accompanying table summarizes price and cost data, combined fixed costs equal $85,000. A marketing research study predicts that for each unit sold of Noyan, 2 units of Dogan, 3 units of Bamsi and 4 units of Turgut will be sold. Action Figures Turgut Bamsi Dogan Noyan Selling Price (in dollars) Variable Cost/unit (in dollars) 35 26 24 16 17 12 12 11 Table 1 a) How many product mix units must be sold to break even? b) How does it translate into sales of individual games?
A Leading manufacturer of Action Figures is about to introduce four new Action Figures. The accompanying table summarizes price and cost data, combined fixed costs equal $85,000. A marketing research study predicts that for each unit sold of Noyan, 2 units of Dogan, 3 units of Bamsi and 4 units of Turgut will be sold. Action Figures Turgut Bamsi Dogan Noyan Selling Price (in dollars) Variable Cost/unit (in dollars) 35 26 24 16 17 12 12 11 Table 1 a) How many product mix units must be sold to break even? b) How does it translate into sales of individual games?
Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter7: Cost-volume-profit Analysis
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Transcribed Image Text:A Leading manufacturer of Action Figures is about to introduce four new Action Figures.
The accompanying table summarizes price and cost data, combined fixed costs equal
$85,000. A marketing research study predicts that for each unit sold of Noyan, 2 units of
Dogan, 3 units of Bamsi and 4 units of Turgut will be sold.
Action Figures
Turgut
Bamsi
Dogan
Noyan
Selling Price (in dollars)
Variable Cost/unit (in
dollars)
35
26
24
16
17
12
12
11
Table 1
a) How many product mix units must be sold to break even?
b) How does it translate into sales of individual games?
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