Mobility Inc. has fixed costs of $ 510,000. The unit selling price, variable cost per unit, and

Question:

Mobility Inc. has fixed costs of $ 510,000. The unit selling price, variable cost per unit, and per unit for the company€™s two products are provided below.

The sales mix for products AA and BB is 70% and 30%, respectively. Determine the break-even point in units of AA andBB.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...