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Asher compant sells 2 products x and Y. product x is sold for 30 per unit and ha

ID: 2580160 • Letter: A

Question

Asher compant sells 2 products x and Y. product x is sold for 30 per unit and has a variable cost of of $15 per unit. Product Y is sold for 30 per unit and has a variable cost of 10 per unit. total fixed costs for the compant are 20000. asher company typically sells 3 units of product x for every unit of product Y. What is break even point in total units? Round any intermediate calc to 2 decimal places and your answer to nearest unit. I only need answer for this one Im just double checking my answer only. Thank you  

Explanation / Answer

Calculate break even point in total units :

Sales mix = 3;1

Contribution margin :

Product x = 15

Product Y = 20

Weighted average contribution margin per unit = (15*3/4+20*1/4) = 16.25

Break even point = 20000/16.25 = 1231 Units

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