Question
A company sells two products, A and B. The sales mix consists of a composite unit of 2 units of A for every 5 units
A company sells two products, A and B. The sales mix consists of a composite unit of 2 units of A for every 5 units of Y (2:5) Fixed costs are Php247,500. The unit contribution margins for A and B are, Php12.50 and Php6.00, respectively.
Considering the company as a whole, the number of composite units to breakeven is
Group of answer choices
22,500 composite units
1,650 composite units
8,250 composite units
4,500 composite units
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Answer is 4500 composite units Composite break even point is computed ba...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
978-0133251241, 9780133427516, 133251241, 013342751X, 978-0133255584
