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XYZ Inc. sells two products, A and B. The selling price, variable cost and contribution margin per unit of product are shown below: Product A
XYZ Inc. sells two products, A and B. The selling price, variable cost and contribution margin per unit of product are shown below: Product A B Selling Price $24 $28 Variable Cost $10 $24 Contribution Margin $14 $4 Fixed costs amount to $640,000. The company sells twice as many units of A as it does B. How many units of each product does the company have to sell to breakeven?
Multiple Choice
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A: 10,000 units; B: 5,000 units.
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B: 9,000 units; B: 4,500 units.
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C: 12,000 units; B: 6,000 units.
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D: 40,000 units; B: 20,000 units.
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