The White Corporation sells two products, X and Y. The following data relate to the two products.

X Y

Sale Price $ 20 $ 40

Variable Cost 12 28

Total Fixed costs are $540,000. The sales dollar volume of the company is normally distributed 60% from X and 40% from Y.

REQUIRED:

A. Determine the break-even point for the company in sales dollars. What is the sales in dollars and in units for each product at break-even point?

B. Refer to the original data. Determine the sales dollars required to earn profit of $90,000. What is the sales in dollars and in units for each product to earn profit of $90,000?

C. Assume that White Corporation sells 4 units of X for every unit of Y. Determine the break-even point for the company in sales unit.