Question
The Sun Company produces two types of eyeglasses: the X and Y models. Also given: Total fixed costs are $10,500. X Y CM/unit $10.00 $6.00
The Sun Company produces two types of eyeglasses: the X and Y models. Also given:
Total fixed costs are $10,500.
X Y
CM/unit $10.00 $6.00
Sales mix .25 .75
What is the weighted average CM (contribution margin) per unit (using sales mix as the weights)?
| a. | $2.50 | c. | $8.00 |
| b. | $4.50 | d. | $7.00 |
20. Refer to the data in question 19. What is the total break-even point in units?
| a. | 1,500 | c. | 1,125 |
| b. | 1,250 | d. | 375 |
21. Refer to the data in question 19. If Sun Company sales mix changed to .5 per product, then the break-even point in units would:
| a. | Increase | c. | Stay the same |
| b. | Decrease | d. | Cannot be determined |
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