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 break-even point in units for each product?