2 AAA Company sells products C1, C2 and C3. In 2017, the unit selling price, variable cost per unit, and sales mix ratio of these products are expected to be as under: Selling Price per unit ($) Variable cost per unit ($) Sales Mix Ratio Fixed costs are $ 1,350,000. Required C1 150 75 2 Products C2 200 125 1 C3 225 150 3 (1) Compute AAA breakeven sales (units). Prove your answer. (2) Calculate the sales (units) required to earn a target profit $ 225,000. Prove your answer.
2 AAA Company sells products C1, C2 and C3. In 2017, the unit selling price, variable cost per unit, and sales mix ratio of these products are expected to be as under: Selling Price per unit ($) Variable cost per unit ($) Sales Mix Ratio Fixed costs are $ 1,350,000. Required C1 150 75 2 Products C2 200 125 1 C3 225 150 3 (1) Compute AAA breakeven sales (units). Prove your answer. (2) Calculate the sales (units) required to earn a target profit $ 225,000. Prove your answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:2 AAA Company sells products C1, C2 and C3. In 2017, the unit selling price, variable cost per unit,
and sales mix ratio of these products are expected to be as under:
Selling Price per unit ($)
Variable cost per unit ($)
Sales Mix Ratio
Fixed costs are $ 1,350,000.
Required
C1
150
75
2
Products
C2
200
125
1
C3
225
150
3
(1) Compute AAA breakeven sales (units). Prove your answer.
(2) Calculate the sales (units) required to earn a target profit $ 225,000. Prove your answer.
![(2) AAA Company sells products C1, C2 and C3. In 2017, the unit selling price, variable
cost per unit, and sales mix ratio of these products are expected to be as under: \table[[.
Products], [, C1, C2, C3], [Selling Price per unit ($), 150, 200, 225], [Variable cost per unit ($
), 75, 125, 150], [Sales Mix Ratio,2, 1, 3]] Fixed costs are $1,350,000. Required (1)
Compute AAA breakeven sales (units). Prove your answer. (2) Calculate the sales (units)
required to earn a target profit $225,000. Prove your answer.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd050ae8a-f106-452f-913a-ddf5e950b909%2F811f4dcc-af44-41d6-b41c-3e9e073bad67%2Fb8sr8bb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(2) AAA Company sells products C1, C2 and C3. In 2017, the unit selling price, variable
cost per unit, and sales mix ratio of these products are expected to be as under: \table[[.
Products], [, C1, C2, C3], [Selling Price per unit ($), 150, 200, 225], [Variable cost per unit ($
), 75, 125, 150], [Sales Mix Ratio,2, 1, 3]] Fixed costs are $1,350,000. Required (1)
Compute AAA breakeven sales (units). Prove your answer. (2) Calculate the sales (units)
required to earn a target profit $225,000. Prove your answer.
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Step 1: Introduce to break even point
VIEWStep 2: Working for weighted average contribution margin ratio
VIEWStep 3: Working for break even sales in units
VIEWStep 4: Working for prove of break even point
VIEWStep 5: Working for sales units required to earn target profit
VIEWStep 6: Working for prove of sales units required to earn target profit
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