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Steven Company has products are provided below. Y 01 units of X units of Y Variable Cost per Unit $468 334 Product Selling Price per Unit -X $1,248 624 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Rc whole number. Contribution Margin per Unit $780 290

Steven Company has products are provided below. Y 01 units of X units of Y Variable Cost per Unit $468 334 Product Selling Price per Unit -X $1,248 624 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Rc whole number. Contribution Margin per Unit $780 290

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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### Break-Even Analysis for Steven Company Steven Company has fixed costs of $267,472. Below are the details for their two products, including the unit selling price, variable cost per unit, and contribution margin per unit. | Product | Selling Price per Unit | Variable Cost per Unit | Contribution Margin per Unit | |---------|------------------------|------------------------|-----------------------------| | X | $1,248 | $468 | $780 | | Y | $624 | $334 | $290 | #### Sales Mix - Product X: 60% - Product Y: 40% #### Objective Determine the break-even point in units for products X and Y. Round your answers to the nearest whole number. **Break-even Analysis** To find the break-even point, use the contribution margin per unit and the sales mix percentage to calculate the number of units needed to cover the fixed costs of $267,472.
Transcribed Image Text:### Break-Even Analysis for Steven Company Steven Company has fixed costs of $267,472. Below are the details for their two products, including the unit selling price, variable cost per unit, and contribution margin per unit. | Product | Selling Price per Unit | Variable Cost per Unit | Contribution Margin per Unit | |---------|------------------------|------------------------|-----------------------------| | X | $1,248 | $468 | $780 | | Y | $624 | $334 | $290 | #### Sales Mix - Product X: 60% - Product Y: 40% #### Objective Determine the break-even point in units for products X and Y. Round your answers to the nearest whole number. **Break-even Analysis** To find the break-even point, use the contribution margin per unit and the sales mix percentage to calculate the number of units needed to cover the fixed costs of $267,472.
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Introduction:-

  • Break-even point point means, where no profit or loss
  • At Break-even point point, total revenues equals to total expenses.
  • Fixed costs are remains constant.
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