Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
Golub Company has fixed costs of $100,000
Golub Company has fixed costs of $100,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products are provided below.
Product.Selling Price..Variable Cost per Unit...contribution margin
per Unit
X $30 $25 $ 5
Y 20 10 10
The sales mix for products X and Y is 75% and 25%, respectively. Determine the break even point in units of X and Y.
Expert Solution
Unit selling price of E: [($30 × 0.75) + ($20 × 0.25)] = $27.50
Unit variable cost of E: [($25 × 0.75) + ($10 × 0.25)] = 21.25
Unit contribution margin of E: = $ 6.25
Break-Even Sales (units) = 16,000 units = $100,000/$6.25
16,000 units of E × 75% = 12,000 units of Product X
16,000 units of E × 25% = 4,000 units of Product Y
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
