Package approach for break even-cost volume profit analysis

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Reference no: EM13863701

Danielson Inc., sells two types of caviar. Both are widely recognized as quality products throughout its worldwide distribution system, but from time to time the actual mix of the product shifts as tastes change. Currently, Danielson has experienced that its sales mix has been 90 percent sales of product X and 10 percent sales of product Y. The company does not expect that sales mix to change in the near future. Product X has a selling price of $ 70 and a variable cost of $ 28, whereas product Y has a selling price of $ 70 and a variable cost of $29. Danielson has monthly fixed costs of $ 63000. If Danielson uses the package approach for break even and cost volume profit analysis, what will be the contents of one package?

Reference no: EM13863701

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