Problem - Sprint Manufacturing Company produces two products, X and Y. The following information is presented for both products:
X Y
Selling price per unit $30 $20
Variable cost per unit 20 5
Total fixed costs are $292,500.
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.