The Lauren Company manufactures two products.Information about the two product lines for the year is as follows:
The company expects fixed costs to be $144,000.The firm expects 60 percent of its sales (in units)to be Product X.
Required: Determine the break-even point in units for both Product X and Product Y.
Form a package with 3 units of Product X and 2 units of Product Y.
Contribution margin from Product X: $40 ´ 3 = $120
Contribution margin from Product Y: $60 ´ 2 = $120

Question

The Lauren Company manufactures two products.Information about the two product lines for the year is as follows:
  The company expects fixed costs to be $144,000.The firm expects 60 percent of its sales (in units)to be Product X.
Required: Determine the break-even point in units for both Product X and Product Y.
Form a package with 3 units of Product X and 2 units of Product Y.
Contribution margin from Product X: $40 ´ 3 = $120
Contribution margin from Product Y: $60 ´ 2 = $120

Quizplus · Accepted Answer

The Answer of The Lauren Company manufactures two products.Information about the two product lines for the year is as follows:
  The company expects fixed costs to be $144,000.The firm expects 60 percent of its sales (in units)to be Product X.
Required: Determine the break-even point in units for both Product X and Product Y.
Form a package with 3 units of Product X and 2 units of Product Y.
Contribution margin from Product X: $40 ´ 3 = $120
Contribution margin from Product Y: $60 ´ 2 = $120

The Lauren Company Manufactures Two Products