Question
Atlanta Radio Supply sells only two products, Product X and Product Y. Product X Product Y Total Selling price $25 $42 Variable cost per unit
Atlanta Radio Supply sells only two products, Product X and Product Y.
Product X Product Y Total
Selling price $25 $42
Variable cost per unit $20 $35
Total fixed costs $650,000
Atlanta Radio Supply sells three units of Product X for each two units it sells of Product Y - which means the sales mix is 60% X and 40% Y. Atlanta Radio Supply has a tax rate of 20%.
Required:
a. What is the breakeven point in units in total and for each product, assuming the sales mix is 3 units of Product X for each two units of Product Y?
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