Craylon Manufacturing Company produces two products,X and Y.The following information is presented for both products:
$\begin{array}{lrr}&X&Y\
\text { Selling price per unit } & \$ 40 & \$ 25 \
\text { Variable cost per unit } & 25 & 15
\end{array}$ 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:
 $\begin{array}{lrr}&X&Y\
\text { Selling price per unit } & \$ 40 & \$ 25 \
\text { Variable cost per unit } & 25 & 15
\end{array}$ 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:
 $\begin{array}{lrr}&X&Y\
\text { Selling price per unit } & \$ 40 & \$ 25 \
\text { Variable cost per unit } & 25 & 15
\end{array}$ 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.