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Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:                                                         X                      Y         Selling price per unit        $40                  $25        Variable cost per unit         25                    15   Total fixed costs are $275,000. Required: a.   Calculate the contribution margin for each product. b.   Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y. c.   Calculate breakeven volume in total dollars if the sales mix is 2 units of X for every 3 units of Y.

Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:                                                         X                      Y         Selling price per unit        $40                  $25        Variable cost per unit         25                    15   Total fixed costs are $275,000. Required: a.   Calculate the contribution margin for each product. b.   Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y. c.   Calculate breakeven volume in total dollars if the sales mix is 2 units of X for every 3 units of Y.

FINANCIAL ACCOUNTING
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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Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:
                                                        X                      Y
        Selling price per unit        $40                  $25
       Variable cost per unit         25                    15
 
Total fixed costs are $275,000.
Required:
a.   Calculate the contribution margin for each product.
b.   Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y.
c.   Calculate breakeven volume in total dollars if the sales mix is 2 units of X for every 3 units of Y.

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