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 20 15

Total fixed costs are $275,000.

Required:

1. 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. (Which is 75% X and 25%Y)

c. What is the breakeven revenue?

d. How many units of each must be sold to generate an income of $1,000,000 ( ignore income taxes)