(CVP for multiple products case) Rowling Company produces and sells three products, product A, product B, and product C. Over the most recent five years, Rowling sold, on average, 30,000 units of A, 50,000 units of B, and 20,000 units of C, annually. The following information pertains to the prices and costs of the three products. ABC Price($)/unit $20 $40 $30 Variable costs ($)/unit $10 $24 $ 15 Fixed costs: $154,000 Target income $28,000 Instructions: Assume that the sales mix is maintained. a. What is the company's break-even point in terms of the number of units of each product? b. How many units of each product should be sold to earn the target income?

(CVP for multiple products case) Rowling Company produces and sells three products, product A, product B, and product C. Over the most recent five years, Rowling sold, on average, 30,000 units of A, 50,000 units of B, and 20,000 units of C, annually. The following information pertains to the prices and costs of the three products. ABC Price($)/unit $20 $40 $30 Variable costs ($)/unit $10 $24 $ 15 Fixed costs: $154,000 Target income $28,000 Instructions: Assume that the sales mix is maintained. a. What is the company's break-even point in terms of the number of units of each product? b. How many units of each product should be sold to earn the target income?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter5: Process Cost Accounting—general Procedures

Section: Chapter Questions

Problem 14E

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