Joseph Co. has three products A, B, and C, and its fixed costs are $69,000. The

Question

Joseph Co. has three products A, B, and C, and its fixed costs are $69,000. The sales mix for its products are 3 units of A, 4 units of B, and 1 unit of C. Information about the three products follows:

A. Calculate the company's break even point in composit units and sales dollars

B. Calculate the number of units of each individual product to be sold at break even point.

A B C Projected   Sales $192,000.00 $192,000.00 $64,000.00 Selling price $40.00 $30.00 $40.00 Contribution   Margin Ratio 30% 35% 35%

Explanation / Answer

A. Calculate the company's break even point in composit units and sales dollars

One composite unit = 3 A

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