Lakers Company produces two products. The following information is available: Product X Product Y Selling price per unit $46 $36 Variable cost per unit $38 $24 Total fixed costs are $234,000. Lakers plans to sell 21,000 units of Product X and 7,000 units of Product Y. Assume the sales mix is 3 units of Product X for every 1 units of Product Y. What is the break-even point in sales (total of Product X and Product Y) for Lakers Company?
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Lakers Company produces two products. The following information is available: Product X Product Y Selling price per unit $46 $36 Variable cost per unit $38 $24 Total fixed costs are $234,000. Lakers plans to sell 21,000 units of Product X and 7,000 units of Product Y. Required: A) Compute the contribution margin for each product. B) What is the expected net income? C) Assume the sales mix is 3 units of Product X for every 1 unit of Product Y. What is the break-even point in units for each product? D) Assume the sales mix is 3 units of Product X for every 2 units of Product Y. What is the
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Jan 26 2021 08:55 AM
1 Approved Answer
Kalyani C answered on January 28, 2021
2.5 Ratings, (9 Votes)
X: S46 - S38 = 58 Y: S36 - S24 = S12 (21,000 x $8) + (7,000 x $12) - $234,000 = $18,000 21,000: 7,000 = 3:1 (3 x 58) + (1 x S12) = S36 S234,000 / S36 = 6,500 units X: 6,500 x 3 = 19,500 units Y: 6,500 x 1 = 6,500 units (2 x $8) +...