Question 4.3
26 marks)
(Total:
Dundar Mifflin manufactures and sells three products: X, Y, and Z.
Annual fixed costs are $515,250 and data about the three products
follow for 2017.
X
Y
Z
Sales
$150,000 $480,000 $790,000
Variable cost 80,000 175,000 290,000
Submission Instructions:
1. Determine the breakeven point
2. The management expects sales to increase by 9% in 2018.
What is the expected operating income in 2018?