XYZ Company produces and sells AAA batteries. The company faces financial difficulties and must
decide to shut down one of its branches. data for the branch follows:
Branch A Branch B
Sales Volume 10,000 units 10,000 units
Sales price per unit $10 $10
Variable cost/unit $4 $6
Fixed Costs (in year) $40,000 $20,000
Required:
1. Prepare a schedule showing management the total revenue, total cost, and total profit or loss for each branch.?
2. Which branch do you recommend to the management to shut down? Explain your answer
3. Calculate break break-even point for each branch?
