Homework Help is Here – Start Your Trial Now!
Business
Accounting
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
See similar textbooks
icon
Related questions
Question
### 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.
Expert Solution
Step 1

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.
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS