Break-Even Units & Weighted Averages
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Use any data to complete the following problem:
Douglas Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. Company records show the following data relating to these two products:
Standard Deluxe:
Selling price per unit
Variable production costs per unit
Variable selling and admin. expense per unit
Expected monthly sales in units
The company's total monthly fixed expense is $XXX.
a. The break-even in sales dollars for the expected sales mix is closest to:
b . If the expected monthly sales in units were divided equally between the two models (XXX Standard and YYY Deluxe), the break-even level of sales would be:
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Solution Summary
Solution provides an Excel spreadsheet which budgets net income, calculates the weighted average selling price & weighted average variable cost and finds the break even units for Douglas Corporation.
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Solution to your posted problem is developed on the basis of assumed data of the month .It is provided in a separate excel file ...
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