PLEASE ANSWER ASAP

PB7. LO 3.4 Abilene Industries manufactures and sells three products (XX, YY, and ZZ). The sales price and unit variable cost for the three products are as follows: Sales Price Variable Cost Product per Unit per Unit XX $75 $45 YY 60 25 ZZ 55 15 Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345,000 per year. A. What are total variable costs for Abilene with their current product mix? B. Calculate the number of units of each product that will need to be sold in order for Abilene to break even. C. What is their break-even point in sales dollars? D. Using an income statement format, prove that this is the break-even point. Solution A Total Variable Costs: S-- B. Units to Break Even: Number of units per product XX YY ZZ C. Break Even: $ See the following spreadsheet for detailed solution. D. Contribution Margin per Unit Sales Price Variable Cost per Unit per Unit Product XX YY ZZ Ratio 4 2 1 Composite Unit Sales Price Variable Cost Contribution Margin Break even per composite unit = Number of units per product Ratio 4 Number of units per product XX ------- break-even units X ---units per composite YY break-even units units per composite ZZ break-even units unit per composite 2 1 Sale Price Unit Sales Total Sales Sales Product XX 6,000 units $75 Product YY 3,000 units x $60 Product ZZ 1,500 units * $55 Total Sales Variable Costs Units Total Variable costs Product XX 6,000 units $45 Product YY 3,000 units