Dodger Company Produces Two Products, X and Y Total Fixed Costs Are $234,000

question 190

Essay

Dodger Company produces two products, X and Y. The following information is presented for both products: $$\begin{array} { l l l } & \underline { X } & \underline { Y } \\\text { Selling pric e per unit } & \$ 46 & \$ 36 \\\text { Variable cost p er unit } & \$ 38 & \$ 24\end{array}$$ Total fixed costs are $234,000. Dodger Company plans to sell 21,000 units of product X and 7,000 units of product Y.
Compute:
a. Contribution margin for each product
b. Current net income
c. Break- even point in units of both X and Y if the sales mix is 3 units of X for every unit of Y
d. Break- even volume in total dollars if the sales mix is 2 units of X for every 3 units of Y

---

Definitions:

Job-Order Costing

A costing method used to allocate costs to specific jobs or orders, tracking the expenses associated with each job individually.

Raw Materials Inventory

The stock of unprocessed materials waiting to be used in the manufacturing process.

Operations

A series of actions or activities conducted in a business or system to produce or achieve certain results or goods.

Job-Order Costing

A costing system that tracks costs individually for each job, suitable for manufacturing or service sectors that produce unique products or services.