Parker pottery produces a line of vases and a line of, Ask an Expert

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parker pottery produces a line of vases and a line of ceramic figurines. each line uses the same equipment and labor ;hence, there are no traceable fixed costs. common fixed cost equals 30,000.parker's accountant has begun to access the profitability of the two lines and has gathered the following data for the last year.

VASES FIGURES
price 40 70variable cost 30 42
contribution margin 10 28
number o0f unit 1000 500

required:

a. compute the number of vases and figurines that must be sold to break even.b. parker pottery is considering upgrading its factory to improve the quality of its products. the upgrade will add ghc 5,260 per year to total fixed cost, and if it is successful the projected sales of vases will be
1500 and figurines sales will be increased to 1000 units. what is the new break even point in units for each of the product?.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91883210

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