Question
The sales mix of a companys two products, X and Y, is 2:1. Unit variable costs for both products are $2, and unit selling prices
- The sales mix of a company’s two products, X and Y, is 2:1. Unit variable costs for both products are $2, and unit selling prices are $5 for X and $4 for Y. The company has $640,000 of fixed costs.
a. What is the contribution margin per composite unit?
b. What is the break-even point in composite units?
c. How many units of X and how many units of Y will be sold at the break-even point?
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
