Edward sells two products with selling prices and contributions as follows: Edwards’s fixed costs are $1,400,000 per year. Edward now anticipates that more customers will buy the cheaper product
G、and that budgeted sales will be 150,000 units for each product. If this happens what would happen to the breakeven revenue?
A、Increase by the extra revenue from
G、of 50,000 × $20/u or $1,000,000
B、Decrease by the extra revenue from
G、of 50,000 × $20/u or $1,000,000
C、Increase by a different amount
D、Decrease by a different amount
G、and that budgeted sales will be 150,000 units for each product. If this happens what would happen to the breakeven revenue?
A、Increase by the extra revenue from
G、of 50,000 × $20/u or $1,000,000
B、Decrease by the extra revenue from
G、of 50,000 × $20/u or $1,000,000
C、Increase by a different amount
D、Decrease by a different amount
【参考答案及解析】
Because the C/S ratio of product G is lower than F the change in mix would reduce the average C/S ratio. As a consequence the BER would increase by an amount but not by the amount of extra sales of product G. This is not relevant.
Because the C/S ratio of product G is lower than F the change in mix would reduce the average C/S ratio. As a consequence the BER would increase by an amount but not by the amount of extra sales of product G. This is not relevant.