Response to the following problem:
Company produces two products. The following information is available: Product X: Selling price per unit- $46, Variable cost per unit- $38. Product Y: Selling price per unit- $36, Variable cost per unit- $24. Total fixed costs are $234,000. The Company plans to sell 21,000 units of Product X and 7,000 units of Product Y.
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?