ABC Company produces two products X and Y, which account for 60% and 40%, respectively, of total sales peso. Contribution margin ratios are 50% for X and 25% for Y. Total fixed costs are Php120,000. What is ABC's break-even point in sales dollars?

ABC Company produces two products X and Y, which account for 60% and 40%, respectively, of total sales peso. Contribution margin ratios are 50% for X and 25% for Y. Total fixed costs are Php120,000. What is ABC's break-even point in sales dollars?

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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Question

ABC Company produces two products X and Y, which account for 60%
and 40%, respectively, of total sales peso. Contribution margin ratios are
50% for X and 25% for Y. Total fixed costs are Php120,000. What is ABC's
break-even point in sales dollars?

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