Compute for the following:c. The company is considering decreasing product K's unit sales to 80,000 and increasing product L's unit sales to 180,000, leaving unchanged the selling price per unit, variable expense per unit, and total fixed expenses. Would you advise adopting this plan?d. Break-even point in terms of dollars of the new plan Penury Company offers two products. At present, the following represents the usual results ofa month's operations:Product KProduct LCombinePerPerdАтountUnitАтоuntUnitАтоuntSales revenue$120,000 $1.20 $80,000 $0.80 $200,000Variable expenses60,0000.6060,000 0.60120,000Contribution margin$ 60,000 $0.60$20,000 $0.2080,000Fixed expenses50,000Net operating income$ 30,000

Name: Compute for the following:c. The company is considering decreasing pro
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Description: Compute for the following:c. The company is considering decreasing product K's unit sales to 80,000 and increasing product L's unit sales to 180,000, leaving unchanged the selling price per unit, variable expense per unit, and total fixed expenses. W

BEPS (Break-even Point Sales) =Fixed Cost/Contribution Margin

Answered: Penury Company offers two products. At…

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Compute for the following:
c. The company is considering decreasing product K's unit sales to 80,000 and increasing product L's unit sales to 180,000, leaving unchanged the selling price per unit, variable expense per unit, and total fixed expenses. Would you advise adopting this plan?
d. Break-even point in terms of dollars of the new plan

Penury Company offers two products. At present, the following represents the usual results of
a month's operations:
Product K
Product L
Combine
Per
Per
d
Атount
Unit
Атоunt
Unit
Атоunt
Sales revenue
$120,000 $1.20 $80,000 $0.80 $200,000
Variable expenses
60,000
0.60
60,000 0.60
120,000
Contribution margin
$ 60,000 $0.60
$20,000 $0.20
80,000
Fixed expenses
50,000
Net operating income
$ 30,000

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