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.
Figg Inc
Figg Inc. has fixed costs of $420,000. 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
L$100$80$20
M 80 62 18
The sales mix for products L and M is 60% and 40%, respectively. Determine the break even point in units of L and M.
Expert Solution
Unit selling price of E: [($100 × 0.60) + ($80 × 0.40)] = $ 92.00
Unit variable cost of E: [($80 × 0.60) + ($62 × 0.40)] = 72.80
Unit contribution margin of E: = $ 19.20
Break-Even Sales (units) = 21,875 units = $420,000/$19.20
21,875 units of E × 60% = 13,125 units of Product L
21,875 units of E × 40% = 8,750 units of Product M
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.
