Question

Zee Corporation manufactures two products, ZeeBrain and ZeeTrain. Zee expects to incur $75,000 in fixed cost....

Zee Corporation manufactures two products, ZeeBrain and ZeeTrain. Zee expects to incur $75,000 in fixed cost. Zee’s expected sales for ZeeBrain is $50,000 and for ZeeTrain is $150,000. Variable costs for ZeeBrain and ZeeTrain are $20,000 and 30,000, respectively.

The overall BEP($) for Zee Corporation is:

Select one:

a. $75,000

b. $30,000

c. $100,000

d. $25,000

Business   Accounting   
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Homework Answers

Answer #1

Ans is

c. $100,000

Reason:-

Zee Brain Zee Train
SP 50000 150000
Variable cost 20000 30000
Contribution 30000 120000
BEP Fixed cost/Weighted contribution per unit
75000/((30000*.5)+(120000*.5))
1 unit
Overall BEP (50000*1*.5)+(150000*.5*1)
100000
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