Solution-Calculate the contribution margin for each product

Calculate the contribution margin for each product

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Reference no: EM133085215

Question - Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:

	X	Y
Selling price per unit	$40	$25
Variable cost per unit	25	15

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 3 units of X for every 1 unit of Y.

d. (Assuming that Craylon has a marginal tax rate of 25%) Compute the total number of units required (of X and Y combined) to generate an after tax profit of $60,000.

Reference no: EM133085215

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Calculate the contribution margin for each product

Reference no: EM133085215

Reference no: EM133085215

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