Question

EB11.

LO 3.4JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows:



Their sales mix is reflected in the ratio 4:4:1. What is the overall unit contribution margin for JJ Manufacturing with their current product mix?

Answer 1

Complete Question is as under:

JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follow:

PRODUCTS Selling Price Per Unit Variable Cost Per Unit

TRUNK SWITCH $60 $28

GAS DOOR SWITCH $75 $33

GLOVE BOX LIGHT $40 $22

Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are 18,840.

Requirement 1: How many units of each product will need to be sold in order for JJ to break even?

Requirement 2: Use the information from the previous exercises involving JJ Manufacturing to determine their break-even point in sales dollars.

Kindly Find the Solution in the attachment.