Craylon Manufacturing Company Produces Two Products,X and Y $\begin{array}{lrr}&X&Y\\\text { Selling price per unit } & \$ 40 & \$ 25 \\\text { Variable cost per unit } & 25 & 15\end{array}$

question 183

Essay

Craylon Manufacturing Company produces two products,X and Y.The following information is presented for both products:
$\begin{array}{lrr}&X&Y\\\text { Selling price per unit } & \$ 40 & \$ 25 \\\text { Variable cost per unit } & 25 & 15\end{array}$ Total fixed costs are $275,000.
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.

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