Multiple-Product Breakeven Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the s

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Multiple Product Breakeven Parker Pottery Produces A Line Of Vases And A Line Of Ceramic Figurines Each Line Uses The S 1 (31.17 KiB) Viewed 30 times

Multiple-Product Breakeven 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 $50,000. Parker's accountant has begun assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines Price 540 $70 Variable cost 30 42 Contribution margin $10 528 Number of units 1,000 500 Required: If required, round your final answers to nearest whole value. 1. Compute the number of vases and the number of figurines that must be sold for the company to break even break-even vases Break-even figurines units 2. Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $5,260 per year to total fixed cost. If the upgrade as successful, the projected sales of vases will be 1,500, and figurine sales will increase to 1,000 units. What is the new break-even point in units for each of the products? Break-even vases units Break-even figurines units