Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:

X Y

Selling price per unit $40 $25

Variable cost per unit 25 15

Total fixed costs are $275,000.

Required:

a. Calculate the contribution margin for each product.

b. Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y.

c. Calculate breakeven volume in total dollars if the sales mix is 3 units of X for every 1 unit of Y.

d. (Assuming that Craylon has a marginal tax rate of 25%) Compute the total number of units required (of X and Y combined) to generate an after tax profit of $60,000.