Dodger Company Produces Two Products, X and Y Total Fixed Costs Are $234,000

Essay

Dodger Company produces two products, X and Y. The following information is presented for both products: $$\begin{array} { l l l } & \underline { X } & \underline { Y } \\\text { Selling pric e per unit } & \$ 46 & \$ 36 \\\text { Variable cost p er unit } & \$ 38 & \$ 24\end{array}$$ Total fixed costs are $234,000. Dodger Company plans to sell 21,000 units of product X and 7,000 units of product Y.
Compute:
a. Contribution margin for each product
b. Current net income
c. Break- even point in units of both X and Y if the sales mix is 3 units of X for every unit of Y
d. Break- even volume in total dollars if the sales mix is 2 units of X for every 3 units of Y