Question 3
The following is budgeted information for the XYZ Corporation
Product 1	Product 2
Annual Production and Sales Units	3,000	1,000	Independent Variable X
Projected Selling Price	$55	$120	Variable
Direct Production Cost Information:
Materials (per unit)	$9	$16	Variable
Direct Labor (per unit)	$15	$25	Variable
Additional Information:
Selling and administrative costs (a mixed cost) are budgeted to be	$75,400.00
The variable component cost (for both products) / unit =	$4.00	Given (Multiply this x units = total variable cost)
Manufacturing overhead cost (a mixed cost) are budgeted to be	$90,000	at the production and sales listed above
The fixed component =	$66,000	Given (Therefore the difference must be total variable cost)
Each product uses the same amount of variable manufacturing overhead per unit.
Asuming the budgeted sales mix remains intact, how many units of each product does XYZ need to sell in order to break even?
Preliminary Goals:
Preliminary Goal 1: Find total Fixed Costs and Variable Costs/Unit
Preliminary Goal 2: Find contribution margin per unit to determine break even units