Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Y1&Y2manufactures two products. Information about the two products is as follows: ProductY1 ProductY2 Selling sales $70 $25 price per unit 45 15 Contribution margin per
Y1&Y2manufactures two products. Information about the two products is as follows:
ProductY1 ProductY2
Selling sales $70 $25
price per unit 45 15
Contribution margin per unit $25 $1
Y1&Y2expects fixed costs to be $199,000. The firm expects 60% of its sales (in units) to be ProductY1and 40% of Y2(a sales mixpackageof 3units ofY1:2units of Y2).
Required:Round to the nearest full unit.
- Calculate the contribution margin per package of 3 ProductsY1's and 2 ProductY2's.5 Marks
- Determine the break-even point in units for ProductsY1andY2.5 Marks
- Determine the level of sales (in dollars) necessary to generate operating income of $135,000.5 Marks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started