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2. Alpha Company produces and sells two products: Alpha-Basic and Alpha-Deluxe. In the coming year, Alpha expects to sell 3,000 units of Alpha-Basic and 1,500
2. Alpha Company produces and sells two products: Alpha-Basic and Alpha-Deluxe. In the coming year, Alpha expects to sell 3,000 units of Alpha-Basic and 1,500 units of Alpha-Deluxe. Information on the two products is as follows:
Alpha-Basic Alpha-Deluxe
Price $120 $200
Variable cost per unit 40 8
Total fixed cost is $140,000.
Required:
What is the sales mix of Alpha-Basic to Alpha-Deluxe?
Compute the break-even quantity of each product.
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