Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:

Total fixed costs are $275,000.
Required:
a.Calculate the contribution margin for each product.
b.Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y.
c.Calculate breakeven volume in total dollars if the sales mix is 2 units of X for every 3 units of Y.

Question

Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:
  
Total fixed costs are $275,000.
Required:
a.Calculate the contribution margin for each product.
b.Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y.
c.Calculate breakeven volume in total dollars if the sales mix is 2 units of X for every 3 units of Y.

Quizplus · Accepted Answer

The Answer of Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:
  
Total fixed costs are $275,000.
Required:
a.Calculate the contribution margin for each product.
b.Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y.
c.Calculate breakeven volume in total dollars if the sales mix is 2 units of X for every 3 units of Y.

Craylon Manufacturing Company Produces Two Products, X and Y