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Calculate the number of units of each product

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Question - Abilene Industries manufactures and sells three products (XX, YY, and ZZ). The sales price and unit variable cost for the three products are as follows:

Sales price per unit Variable Cost per unit

XX $75 $45

YY 60 25

ZZ 55 15

Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345,000 per year.

Required -

A. What are total variable costs for Abilene with their current product mix?

B. Calculate the number of units of each product that will need to be sold in order for Abilene to break even.

C. What is their break-even point in sales dollars?

Reference no: EM132643270

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