# CMA Study Group

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## Can any one help me on this ? #### Rajesh Kumar05-06-2023 09:32 AM #### MOSTAFA ADEL KALAAF ABDALATEF05-06-2023 11:44 PM #### Hany Salman05-07-2023 04:23 AM #### DIEM LE NGUYEN THI05-07-2023 01:36 AM #### Mohammed Aminsha05-07-2023 01:56 AM  #### Kishore Kumar Natakala05-07-2023 10:35 AM #### Zahraa Abed05-08-2023 05:06 AM • #### 1.  Can any one help me on this ?

Posted 05-06-2023 09:32 AM

A company with \$280,000 of fixed costs has the following data:

Assume three units of A are sold for each unit of B sold. How much will sales be in dollars of product B at the breakeven point?

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Rajesh Kumar
Accountant
Koderma
India
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• #### 2.  RE: Can any one help me on this ?

Posted 05-06-2023 11:44 PM

280000 unit

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Accountant
Jeddah
Saudi Arabia
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• #### 3.  RE: Can any one help me on this ?

Posted 05-07-2023 04:23 AM
FC/CM  280000/6-5 = 280000 UNIT

• #### 4.  RE: Can any one help me on this ?

Posted 05-07-2023 01:36 AM
Hi,

You can refer solution as below.

Call "y" as sales volume of item B at break event point => it mean sales volume of item A will be 3y

VGM of A: (5-3)=2/unit
VGM of B: (6-5)=1/unit

So with sales volume of B is "y" and itA is "3y", total VGM will be: VGM A + VGM B= 2*3y + 1*y=7y
At break even point mean total VGM = total fixed cost

<=> 7y = 280.000
=> y = 40.000 unit

• #### 5.  RE: Can any one help me on this ?

Posted 05-07-2023 01:56 AM
FC = 280,000
BEP profit= 0
So CM also = 280,000

One unit of sale A & 3 unit sale of B
Sales unit= "X"

Cm = (sales unit x sellingprice)-(sales unit x        variable cost) = 280,000

A=("X"*3x5) - ("X"*3x3) +.     (*3 is 1A=3B)
B=("X" x 6) - ("X" x 5)

15x - 9x + 6x - 5x =280,000
Finally.   X= 40,000

Ans: doller unit of sale B
=40,000*6 = 240,000

• #### 6.  RE: Can any one help me on this ?

Posted 05-08-2023 12:43 AM

Contribution margin for A is 2 (5-3) B is 1 (6-5)
The sales mix A 3 unit B 1 unit so the percentage is 3/4 75% A 1/4 25 % B

Fixed COST  280,000/ 2x.75 + 1x .25
280,000/1.75  = 160,000
For B 160,000X .25 = 40,000

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• #### 7.  RE: Can any one help me on this ?

Posted 05-07-2023 10:35 AM

sales be in dollars of product B at the breakeven point?
BEP units for Product B is 40,000 and accordingly the BEP sales for product B is \$240,000 (i.e, 40,000 units X\$ 6)
Fixed cost / Contribution margin for the product mix
= \$280,000/ 7x [ ie Product A = 3times X2 = \$6x  and Product B= 1x]
x= \$280000/7 = 40,000 units of Product B

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Kishore Kumar Natakala
Other
BENGALURU
India
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• #### 8.  RE: Can any one help me on this ?

Posted 05-08-2023 05:06 AM
Unit CM of A = 5-3=2
Unit CM of B = 6-5= 1
Weighted Avg CM/unit = 3/4 (2) + 1/4 (1)= 7/4
BE (total nbr of units) = FC/ WACM per unit
= 280,000/(7/4) = 160,000 units in total

For product B, BE units= 160,000 * (1/4) = 40,000

• #### 9.  RE: Can any one help me on this ?

Posted 05-08-2023 05:22 AM