Harvey Company makes two products. The budgeted per-unit contribution margin for each product follows:

Harvey expects to incur fixed costs of $115,000. The relative sales mix of the products is 60 percent for Deluxe and 40 percent for Luxury.
Required
a. Determine the total number of products (units of Deluxe and Luxury combined) Harvey must sell to break even.
b. How many units each of Deluxe and Luxury must Harvey sell to break even?

Transcribed Image Text:

Deluxe Luxury Sales price Variable cost per unit Contribution margin per unit $75 40 $48 33 $15 $35