Question
Dos Mfg Co. sells two products. Product A sells for $10 per unit with variable costs of $6 per unit. Product B sells for $20
Dos Mfg Co. sells two products. Product A sells for $10 per unit with variable costs of $6 per unit. Product B sells for $20 per unit with variable costs of $12 per unit. Product A sells 75%, while B sells 25% of the total units sold. Currently, with combined sales of 20,000 units, the company made Total Revenue of $250,000, after subtracting variable cost got Total Contribution Margin of $100,000, and after subtracting Total Fixed Cost of $50,000, earned Operating Profit of $50,000. The ratio of total contribution margin to total revenue was 40%. What would be the breakeven point in combined total sales $s?
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