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Company X produces and sells two products: product P and product S. The selling...
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Company X produces and sells two products: product P and product S. The selling prices are $60 for Product P and $100 for Product S sells for. The variable cost are as follows:
| Product P | Product S |
Variable manufacturing cost cost as percentage of selling price | 34% | 35% |
Variable selling and administrative cost as percentage of selling price | 6% | 5% |
Expected sales in units next year are: 4000 for Product P and 1000 for Product S. Fixed costs are budgeted at $188240 per year.
The yearly break even point in sales is:
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