XYZ, Inc. produces and sells two products: phones and tablets. XYZ plans to sell 48,000 phones and 12,000 tablets in the coming year. Product price and cost information includes: Price $1,200 for phones, $910 for tablets. Unit Variable Cost $225 for phones, $265 for tablets Direct Fixed Cost $272,100 for phones, $191,680 for tablets Common fixed selling and administrative expenses total $194,855. Part 1 What is the sales mix estimated for next year? Round your answer to two decimal places. Part 2 Using the rounded sales mix from Part 1, determine how many phones and tablets should be sold to break-even.
XYZ, Inc. produces and sells two products: phones and tablets. XYZ plans to sell 48,000 phones and 12,000 tablets in the coming year. Product price and cost information includes: Price $1,200 for phones, $910 for tablets. Unit Variable Cost $225 for phones, $265 for tablets Direct Fixed Cost $272,100 for phones, $191,680 for tablets Common fixed selling and administrative expenses total $194,855. Part 1 What is the sales mix estimated for next year? Round your answer to two decimal places. Part 2 Using the rounded sales mix from Part 1, determine how many phones and tablets should be sold to break-even.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 10P
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XYZ, Inc. produces and sells two products: phones and tablets. XYZ plans to sell 48,000 phones and 12,000 tablets in the coming year. Product price and cost information includes:
Price $1,200 for phones, $910 for tablets.
Unit Variable Cost $225 for phones, $265 for tablets
Direct Fixed Cost $272,100 for phones, $191,680 for tablets
Common fixed selling and administrative expenses total $194,855.
Part 1 What is the sales mix estimated for next year? Round your answer to two decimal places.
Part 2 Using the rounded sales mix from Part 1, determine how many phones and tablets should be sold to break-even.
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