Question
Questions 1 and 2 are based on the following information. A company sells two products, X and Y The sales mix consists of a composite
Questions 1 and 2 are based on the following information. A company sells two products, X and Y The sales mix consists of a composite unit of 2 units of X and for every 5 units of Y (2:5). Fixed costs are $49,500. The unit contribution margins for X and Y are $2.50 and $1.20, respectively
1)Considering the company as a whole, the number of composite units to break even is
a)31,500
b)4,500
c)8,250
d)9,900
2)If the company had an operating income of $22,000, the unit sales must have been
Product Xproduct Y
-------------------------------
A.5,00012,500
B.13,00032,500
C.23,80059,500
D.28,60071,500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started