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.
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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