Question
The following information is for Alfa Corporation: Product X: Revenue $10.00 Variable Cost $2.50 Product Y: Revenue $15.00 Variable Cost $5.00 Total fixed costs $50,000
The following information is for Alfa Corporation: Product X: Revenue $10.00 Variable Cost $2.50 Product Y: Revenue $15.00
Variable Cost $5.00 Total fixed costs $50,000
1. What is the breakeven point assuming the sales mix consists of two units of Product X and one unit of Product Y? 2. What is the operating income, assuming actual sales total 150,000 units, and the sales mix is two units of Product X and one unit of Product Y?
3. If the sales mix shifts to one unit of Product X and two units of Product Y, calculate the weighted- average contribution margin.
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