Using the contribution margin approach, find the breakeven point in units for Sardinia Companys two products. Product

Question:

Using the contribution margin approach, find the breakeven point in units for Sardinia Company’s two products. Product A’s selling price per unit is $10, and its variable cost per unit is $4. Product B’s selling price per unit is $8, and its variable cost per unit is $5. Fixed costs are $15,000, and the sales mix of Product A to Product B is 2:1.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...