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Question - Mayfield Company sells two products, Blue models and Plaid models. Blue models sell for $45 per unit with variable costs of $30 per unit. Plaid models sell for $50 per unit with variable costs of $25 per unit. Total fixed costs for the company are $19,950. Mayfield Company typically sells two Blue models for every three Plaid models.
Required -
What is the breakeven point in total units?
How many units of each product need to be sold to breakeven?
How many units of each product need to be sold to earn a targeted operating income of $10,500?
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