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mik1104 mik1104
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Posts: 327
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5 years ago
The following information is for Alex Corp:

Product X: Revenue$12.00
Variable Cost$4.50

Product Y: Revenue$44.50
Variable Cost$9.50

Total fixed costs$75,000

What is the breakeven point assuming the sales mix consists of two units of Product X and one unit of Product Y?
A) 842.5 units of Y and 1,685 units of X
B) 3,000 units of Y and 1,500 units of X
C) 1 units of Y and 10,000 units of X
D) 1,500 units of Y and 3,000 units of X
Textbook 
Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis


Edition: 16th
Authors:
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Replies
wrote...
#1
5 years ago
 D
Explanation:  D) N = units of product Y; and 2N = units of product X;
($12.00  $4.50)  2N + ($44.50  $9.50)  N  $75,000 = 0
$15.00N + $35.00N = $75,000
$50N = $75,000
N = 1,500 units
Product Y = 1,500 units; Product X = 3,000 units
mik1104 Author
wrote...
#2
5 years ago
Makes more sense now, have a good weekend!
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