Question
The following information is for Alex Corp: Product X: Revenue $12.00 Variable Cost $4.50 Product Y: Revenue $44.50 Variable Cost $9.50 Total fixed costs $75,000
The following information is for Alex Corp:
Product X: Revenue $12.00
Variable Cost $4.50
Product Y: Revenue $44.50
Variable Cost $9.50
Total fixed costs $75,000
What is the breakeven point assuming the sales mix consists of two units of Product X and one unit of Product Y?
a. 842.5 units of Y and 1,685 units of X
b. 1 units of Y and 10,000 units of X
c. 1,500 units of Y and 3,000 units of X
d. 3,000 units of Y and 1,500 units of X
I got C, I need this second part below.
What is the operating income, assuming actual sales total 120,000 units, and the sales mix is two units of Product X and one unit of Product Y?
a. 1,925,000
b. 1,200,000
c. 2,000,000
d. 1,960,000
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