Managerial Accounting Assignment on Break-Even Analysis and Sales Mix

MANAGERIAL ACCOUNTING
Assignment
Student Name
[Pick the date]

The main information about the three models of brewing machines with different special features
are summarised in the table and is highlighted below:
Model 1: Home Brewer
This brewer machine has significantly large sized water reservoir that has the tendency to make
20 cup of coffee.
Model 2: Office Brewer
This brewer machine has number of brewing sizes which provides consistent taste.
Model 3: European Deluxe Brewer
This brewer machine has different type of filtering devices.
Question 1
Break-even point of the company ($ sales)
 Total sale of the company
¿ ∑ (Total sale volume × Per unit sale price)
1

¿ ( 150 ×12000 ) + ( 200 × 30000 ) + ( 300 ×6000 )
¿ 9,600,00 0
 Total variable cost of the company
¿ ∑ (Total sale volume × Per unit variable cost)
¿ ( 120 ×12000 ) + ( 140 × 30000 ) + ( 180 ×6000 )
¿ 6,720,00 0
 Contribution margin ratio for the company
¿ Contributionmargin
Total sale of the company
¿ 9600000−6720000
9600000
¿ 0.30
 Break-even point of the company
Break−even point= ¿ costs annually
Contributionmargin ratio
¿ 1500000
0.3
¿ 5,000,000
Hence, the break-even point of the company is $5,000,000.
Question 2
Total sales dollars needed for each of the product at the calculated break-even point (Detscher,
2016).
2