Question #317423

From the following data of Megh Enterprises.


a. Calculate the combined breakeven sales. The Company is producing three products.


product, sales, Variable cost

A 10000 6000

B 5000 2500

C 5000 2000

The company incurred a fixed cost of Rs 5700.


b. Also, Discuss the concept and relevance of Breakeven sales for an enterprise


1
Expert's answer
2022-04-01T16:35:34-0400

Breakevensales=fixedcostssalessalesvariablecostsBreakeven sales = \frac {fixed costs * sales}{sales - variable costs}


Fixed costs = 5700

Sales = 10000+5000+5000=2000010000+5000+5000 = 20000

Variable costs = 6000+2500+2000=105006000+2500+2000 = 10500

Breakevensales=5700×200002000010500Breakeven sales = \frac {{5700}\times{20000}}{20000 - 10500}


Breakevensales=1140000009500Breakeven sales = \frac{114000000}{9500}


Breakeven sales = 12000

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!
LATEST TUTORIALS
APPROVED BY CLIENTS