ACC202- Assessment Assignment Data Synthesis and Analysis Topic: Cost-Volume -Pr

Question

ACC202- Assessment Assignment Data Synthesis and Analysis Topic: Cost-Volume -Profit Analysis General Instructions Assess each of the following situations and provide the appropriate answers including the details of all calculations required for each problem. Problem #1 Brancati Inc produces and sells two products. Data concerning those products for the most recent month appear be low Product Wo7c $ 25,000 7,000 Product B29Z $ 27,000 $8,600 Sales Variable expenses Fixed expenses for the entire company were $32,860. Required: a. Determ ine the overall breakeven point for the company in total sales dollars If the sales mix shifts toward Product Ww07c with no change in total sales, what will happen to the bre ak-e ven point for the company? Problem #2

Explanation / Answer

Product W07C Product 829Z Total Sales 25000 27000 52000 Variable expenses 7000 8600 15600 Contribution margin 18000 18400 36400 Contribution margin ratio 72.00% 68.15% 70.00% a Overall break even point = Fixed expenses/Overall CM ratio = 32860/70%= 46942.86 or 46943(rounded off) b The overall breakeven point will decrease since its CM ratio is higher

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