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

Levine expects to incur fixed costs of $390,000. The relative sales mix of the products is 75 percent for Deluxe and 25 percent for Luxury.

Required
a. Determine the total number of products (units of Deluxe and Luxury combined) Levine must sell to break even.
b. How many units each of Deluxe and Luxury must Levine sell to breakeven?

Transcribed Image Text:

Deluxe $40 24 $16 Luxury Sales price Variable cost per unit Contribution margin per unit $80 50 $30