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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%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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