Question
3. Radison Inc. sells a product for $62 per unit. The variable cost is $42 per unit, while fixed costs are $86,400. Determine (a) the
3.
Radison Inc. sells a product for $62 per unit. The variable cost is $42 per unit, while fixed costs are $86,400.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $69 per unit.
a. Break-even point in sales units | |
b. Break-even point if the selling price were increased to $69 per unit |
5.
Michael Company has fixed costs of $476,250. The unit selling price, variable cost per unit, and contribution margin per unit for the companys two products follow:
Product Model | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
Yankee | $270 | $110 | $160 | ||||||
Zoro | 470 | 420 | 50 |
The sales mix for products Yankee and Zoro is 70% and 30%, respectively. Determine the break-even point in units of Yankee and Zoro.
a. Product Model Yankee fill in the blank 1 units b. Product Model Zoro fill in the blank 2 units
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