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Home Q & A Board Other Fields Homework Help Business Accounting
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Meesh1234 Meesh1234
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5 years ago
Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:
XY
Selling price per unit$40$25
Variable cost per unit2515

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.
Textbook 
Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis


Edition: 16th
Authors:
Read 57 times
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Replies
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#1
5 years ago
 
a.X: Contribution margin $40  $25 = $15
Y: Contribution margin $25  $15 = $10

b.Contribution margin (3  $15) + (1  $10) = $55
Breakeven point in units $275,000 / $55 = 5,000 units
X: 5,000  3 = 15,000 units
Y: 5,000  1 = 5,000 units

c.Contribution margin (2  $15) + (3  $10) = $60
Breakeven point in units $275,000 / $60 = 4,583.33 units
X: Dollar sales = 4,583.33  2 = 9,167  $40 = $366,680 (rounded)
Y: Dollar sales = 4,583  3 = 13,750  $25 = $343,750
Total dollar sales = $710,430
Meesh1234 Author
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#2
5 years ago
Above and beyond my expectations for this site
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