Nexco produces two products. Data regarding these two products are as follows: S

Question

Nexco produces two products. Data regarding these two products are as follows: Selling Price per unit: COGS per unit: Indirect Expenses per month: Product Sales Ratio: Machine Time (minutes) Product A $338.38 $222.22 $1,900,000 Product B $811.81 $444.44 $3,300,000 3 150 50 What are the Breakeven Volumes for both A & B Products? HINT: Develop equations for both Net Profit and Sales Ratios) A 16,357 units B 8,983 units A 10,636 units B 6,382 units OA 15,449 units B 9,270 units A 19,764 units B-7,905 units

Explanation / Answer

Hence OPtion C

A B SP Selling price per unit 338.38 811.81 C COGS per unit 222.22 444.44 IE Indirect expenses 1900000 3300000 SR Prod sales ration 5 3 Machine time 50 150 M = (SP-C) Margin 116.16 367.37

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