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Craylon Manufacturing Company Produces Two Products, X and Y

Question 94

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Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:
Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:     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.
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.

Correct Answer:

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a.X: Contribution margin $40 - $25 = $15...

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