Hargenrader Inc

question 88

Essay

Hargenrader Inc. produces and sells two products. During the most recent month, Product P02S's sales were $24,000 and its variable expenses were $7,920. Product O50U's sales were $41,000 and its variable expenses were $14,180. The company's fixed expenses were $40,350.
Required:
a. Determine the overall break-even point for the company in total sales dollars. Show your work!
b. If the sales mix shifts toward Product P02S with no change in total sales, what will happen to the break-even point for the company? Explain.

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Definitions:

Fill Orders

The process of completing customer orders by preparing and delivering the requested goods or services.

Manufacturing Cycle Efficiency

A measure of the efficiency of the production process, calculated as the value-added time divided by the total cycle time.

Delivery Performance

A measurement of how well a company can meet its promised delivery times to customers.

Delivery Cycle Time

The total time taken from receipt of a customer order to the delivery of the product or service.