Bremen Electronics Case
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Hello, I need help solving the problem below in this case study, attached is the case.
Questions:
- What would the breakeven sales volume per month, assuming a ratio of two RC1 sold for each RC2 sold? (compute variable cost per unit and fixed cost per month)
- What level of sales would provide the target profit of $210,000 per year or $17,500 per month?
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Solution Summary
The solution calculates the breakeven level for RC1 and RC2 products. It helps solve problems based on a case study.
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1. What would the breakeven sales volume per month, assuming a ratio of two RC1 sold for each RC2 sold? (compute variable cost per unit and fixed cost per month)
Breakeven volume is when the total revenue is equal to total cost. The first point is to calculate the contribution margin per unit. This helps to remove the variable cost and the contribution margin is available to cover the fixed costs. The attached file has the calculation. The variable part cost is calculated by ...
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