[jennifer1985]

Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: “Wes, I’m not sure how to go about answering the questions that came up at the meeting with the president yesterday.”
“What’s the problem?”
“The president wanted to know the break-even point for each of the company’s products, but I am having trouble figuring them out.”
“I’m sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 am sharp in time for the follow-up meeting at 9:00.”
Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. Data concerning these products appear below:
Velcro Metal Nylon
Normal annual sales volume…. 100,000 200,000 400,000
Unit selling price $1.65 $1.50 $0.85
Variable cost per unit $1.25 $0.70 $0.25

Total fixed expenses are $400,000 per year.
All three prdocuts are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptable numbers of customers.
The company has an extremely effective lean productive system, so there are no beginning or ending work in process or finished goods inventories.
Required
1. What is the company’s over-all break-even point in total sales dollars?
2. Of the total fixed costs of $400,000, $20,000 could be avoided if the Velcro product were dropped, $80,000 if the Metal product were dropped, and $60,000 if the Nylon product were dropped. The remaining fixed costs of $240,000 consist of common fixed costs such as administrative salaries and rent of the factory building that could be avoided only by going out of business entirely.
a. What is the break-even point in units for each product?
b. If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company? Explain this result.

[NeedKarma]

Thanks for copy/pasting your homework.

What answers do you have so far?

P.S. no one is going to do your homework for you.

[jennifer1985]

Actually I typed this out and I am stuck! I am totally stumped on this it is an online course! My teacher is unwilling to help if someone can give me the formula to help figure out this answer that would help me! I am not looking to get this answer solved!

[jennifer1985]

Would the break even point in total sales dollars be 700,000 which is a sum of all three of the amounts or do I need to do something spiffy to figure it out? Any help would be greatly appreciated I actually would like to know how to figure out these problems I am not a slack off I just need some help and do not have the money to hire a tutor!!

[jennifer1985]

Clearly nobody here is an expert! I am just asking for some assistance I do not want the answers just someone to help me figure out the how the formulas!

[NeedKarma]

There are some accounting experts, they just haven't visited the site yet today.

[jennifer1985]

How do I get someone who know accounting to help me with this problem?