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Question 2: (20 marks) YY Manufacturing Company with fixed costs $594,000 produces two products, Product X and Product Y. It has following information: Per
Question 2: (20 marks) YY Manufacturing Company with fixed costs $594,000 produces two products, Product X and Product Y. It has following information: Per unit (X) Per unit (Y) Selling price Direct materials Direct labor for assembly $72 $120 36 55 16 25 Variable production overhead 4 5 Required: i) ii) Assuming sales mix is 4 units of X and 1 unit of Y, calculate breakeven point in units of product X and Y respectively. (13 marks) The management of YY is considering to change the sales mix to 2 units of X and 2 units of Y. Do you agree with the change? Explain. (7 marks)
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