The question:The sales mix for products X and Y is 60% and 40%, respec#vely. Determine the break-even point in units of X and Y. 3. Steven Company has fixed costs of $160,000. The unit selling price, variable cost per unit, andcontribution margin per unit for the company's two products are provided below.Contribution MarginSelling Price per Variable Cost perper UnitProductUnitUnit$180$80$100Y1005050

Answered: 3. Steven Company has fixed costs of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The question:

The sales mix for products X and Y is 60% and 40%, respec#vely. Determine the break-even point in units of X and Y.

3. Steven Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and
contribution margin per unit for the company's two products are provided below.
Contribution Margin
Selling Price per Variable Cost per
per Unit
Product
Unit
Unit
$180
$80
$100
Y
100
50
50

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Step 1

Break-even analysis is a technique widely used by the production department. It helps to determine the units to be sold to recover the total cost. It also helps to set the price of the product. Break-even analysis includes contribution margin, break-even, profit volume ratio, etc.

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