The XYZ Company has three major products, whose contribution margins are shown below in Table 1.1. Table 1.1. Presents description of the mixed products and related contribution margin Description Products Sales Price $ 13 $12 $6.5 Variable cost per unit 8 6 4 CM/Unit 5 6 2.5 Total fixed costs are $100,000. Question (a) the break-even point in units in total and for each product if the three products are sold in the proportions of 30%,50%, and 20%, and (b)the break-even point in total and for each product if the sales mix ratio changes to 50%, 30%, and 20%
The XYZ Company has three major products, whose contribution margins are shown below in Table 1.1. Table 1.1. Presents description of the mixed products and related contribution margin Description Products Sales Price $ 13 $12 $6.5 Variable cost per unit 8 6 4 CM/Unit 5 6 2.5 Total fixed costs are $100,000. Question (a) the break-even point in units in total and for each product if the three products are sold in the proportions of 30%,50%, and 20%, and (b)the break-even point in total and for each product if the sales mix ratio changes to 50%, 30%, and 20%
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6PA: Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit...
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Q The XYZ Company has three major products, whose contribution margins are shown below in Table 1.1.
Table 1.1. Presents description of the mixed products and related contribution margin
|
Description |
Products
|
||
|
|
|
||
|
Sales Price |
$ 13 |
$12 |
$6.5 |
|
Variable cost per unit |
8 |
6 |
4 |
|
CM/Unit |
5 |
6 |
2.5 |
Total fixed costs are $100,000.
Question
(a) the break-even point in units in total and for each product if the three products are sold in the proportions of 30%,50%, and 20%, and
(b)the break-even point in total and for each product if the sales mix ratio changes to 50%, 30%, and 20%
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