Multiple Product Cost Volume Profit A company sells three products as shown below: Product X Product...

Transcribed Image Text:

Multiple Product Cost Volume Profit A company sells three products as shown below: Product X Product Y Product Z Total Units Sales 60,000 $90,000 140,000 $150,000 Variable Costs $63,000 $ 93,000 50,000 250,000 $60,000 $300,000 $19,000 $175,000 Contribution Margin Fixed Costs $125,000 $100,000 These three products all always sold in fixed proportions. In other words, Product X always accounts for 24% of total sales (60,000/250,000), Product Y always accounts for 56% of total sales (140,000/250,000), and Product Z always accounts for 20% of total sales (50,000/250,000). Required: a. How many units of each product need to be sold to break-even? b. How many units of each product must be sold if the company wants to have a profit of $50,000? Multiple Product Cost Volume Profit A company sells three products as shown below: Product X Product Y Product Z Total Units Sales 60,000 $90,000 140,000 $150,000 Variable Costs $63,000 $ 93,000 50,000 250,000 $60,000 $300,000 $19,000 $175,000 Contribution Margin Fixed Costs $125,000 $100,000 These three products all always sold in fixed proportions. In other words, Product X always accounts for 24% of total sales (60,000/250,000), Product Y always accounts for 56% of total sales (140,000/250,000), and Product Z always accounts for 20% of total sales (50,000/250,000). Required: a. How many units of each product need to be sold to break-even? b. How many units of each product must be sold if the company wants to have a profit of $50,000?