Bellroy Company makes protective cases for iPhone 11 Pro Max. The company has three product lines – Polycarbonate (PC) cases, Silicone (S) cases and Thermoplastic Polyurethane (TPU) case. The following table presents the sales and cost data of the business.
|PC case||S case||TPU Case|
|Selling Price per unit||50||65||90|
|Variable Cost Per unit||45||61||87|
|Company’s total fixed cost||35,100|
After analysing the market trend, the management accountant of Bellroy Company expects that the company will be able to sell 17,500 cases in next month consisting, 2,500 units of PC case, 10,000 units of S case and 5,000 units of TPU case.
- If the given sales mix is maintained, what is Bellroy company’s break-even point in units?
- Assuming that the given sales mix is maintained, what is the operating profit when 17,500 units are sold?
- If the company sold 2,500 units of PC case, 7,500 units of S case and 7,500 units of TPU case, what would be the operating income? What would be the new break-even point in units if these new relationships persist in the next period?
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