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Benjamin Co (A) Calculate the Company's Break-Even Point in Composite Units and Its

question 28

Essay

Benjamin Co. has three products A, B, and C, and its fixed costs are $69,000. The sales mix for its products are 3 units of A, 4 units of B, and 1 unit of C. Information about the three products follows:
A B C
 Projected sales in dollars..... $192,000$192,000$64,000 Selling price per unit......... $40$30$40 Contribution margin ratio ...... 30%35%35%\begin{array} { l | l | l | l | l } \text { Projected sales in dollars..... } & \$ 192,000 & \$ 192,000 & \$ 64,000 \\\hline \text { Selling price per unit......... } & \$ 40 & \$ 30 & \$ 40 \\\hline \text { Contribution margin ratio ...... } & 30 \% & 35 \% & 35 \%\end{array} (a) Calculate the company's break-even point in composite units and sales dollars.
(b) Calculate the number of units of each individual product to be sold at the break-even point.

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Definitions:

Government Support

Financial or policy assistance provided by governmental bodies to businesses, industries, or individuals.

NCI

Non-Controlling Interest, which refers to ownership in a subsidiary not attributable directly or indirectly to the parent company, often reflecting in consolidated financial statements.

Entity Method

An approach to accounting and financial reporting that sees the company as separate from its owners, focusing on the company's transactions and financial state.

Carrying Value

The net amount at which an asset or liability is valued on the balance sheet, considering factors such as original cost, accumulated depreciation, and impairment losses.

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