Joseph CoHas Three Products A,B,and C,and Its Fixed Costs Are $69,000

question 143

Essay

Joseph 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:
$\begin{array}{lrrrr} &\text {A}&\text {B}&\text {C}\\\text { Projected sales in dollars } & \$ 192,00 & \$ 192,000 & \$ 64,000 \\& 0 & & \\\text { Selling price per unit } & \$ 40 & \$ 30 & \$ 40 \\\text { Contribution margin ratio } & 30 \% & 35 \% & 35 \%\end{array}$
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:

Set of Data

A collection of related pieces of information considered collectively, often consisting of numerical values or categorical classifications.

Mean

The average of a set of numbers, calculated by adding all the numbers together and then dividing by the count of those numbers.

Data

Information collected for reference or analysis, often numerical, that can be used for calculation and statistical study.

Equal

Describes the state of being the same in quantity, size, degree, or value.