Ratio of sales=X:Y
=2:1
Hence sales of X=(2/3)*120,000=80,000 units[Total=2+1=3]
Y=(1/3)*120,000=40,000 units
X | Y | |
Revenue | (8.5*80,000)=680,000 | (38*40,000)=1,520,000 |
Variable costs | (3.5*80,000)=280,000 | (8*40,000)=320,000 |
Contribution margin | 400,000 | 1,200,000 |
Total Contribution margin=(400,00+1,200,000)=$1,600,000
Less:Total fixed costs=$46000
Operating income=$1,554,000
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