Steven Company has fixed costs of $276,000. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $276,000. 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 | $864 | $324 | $540 |
| Y | 731 | 391 | 340 |
The sales mix for product X and Y is 60% and 40% respectively.
Determine the break-even point in units of X and Y combined. Round
answer to nearest whole number.
units
Homework Answers
Answer:
Unit selling price of sale mix = (864*60%)+(731*40%)=811
Unit variable cost of sales mix =(324*60%)+(391*40%)=351
Unit contribution Margin of sales mix = (811-351)= 460
Break Even sales unit = (276000/460)=600
600*60%=360 unit of X
600*40%= 240 unit of Y
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