M-Mobile Company manufactures and sells two products, black phones and white phones, in the ratio of 5:3.

Question:

M-Mobile Company manufactures and sells two products, black phones and white phones, in the ratio of 5:3. Fixed costs are $85,000, and the contribution margin per composite unit is $170. What number of both black and white phones is sold at the break-even point?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...