Steven Company has fixed costs of $185,484. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below.
Product | Selling Price per Unit | Variable Cost per Unit | Contribution Margin per Unit |
X | $768 | $288 | $480 |
Y | 323 | 173 | 150 |
The sales mix for Products X and Y is 60% and 40%, respectively.
Determine the break-even point in units of X and Y. Round
answers to the nearest whole number.
units of X____
units of Y____
Weighted average contribution margin=Respective contribution margin*Respective sales mix
=(480*0.6)+(150*0.4)=348
Breakeven=Fixed cost/Weighted average contribution margin
=185,484/348
=533 units
Hence breakeven point of:
X=533*60%=320 units
Y=533*40%=213 units.
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