Asher Company sells two products-X and Y.Product X is sold for $30 per unit and has a variable cost per unit of $15.Product Y is sold for $30 per unit and has a variable cost of $10 per unit.Total fixed costs for the company are $20,000.Asher Company typically sells three units of Product X for every unit of Product Y.What is the breakeven point in total units? (Round any intermediate calculations to two decimal places,and your answer to the nearest unit.)

Question

Quizplus · Accepted Answer

Explanation:Contribution Margin per unit = $30 - $15 = $15Contribution Margin Ratio = $15/$30 = 50%Breakeven point in total units = $20,000/50% = 40,000 unitsSince Asher Company typically sells three units of Product X for every unit of Product Y, the breakeven point in total units is 40,000 units / 4 = 10,000 units.

Asher Company Sells Two Products-X and Y