YY Manufacturing Company with fixed costs $594,000 produces two products, Product X and Product Y. It...

 

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YY Manufacturing Company with fixed costs $594,000 produces two products, Product X and Product Y. It has following information: Selling price Direct materials Direct labor for assembly Variable production overhead Required: i) ii) Per unit (X) $72 36 16 4 Per unit (Y) $120 55 25 5 Assuming sales mix is 4 units of X and 1 unit of Y, calculate breakeven point in units of product X and Y respectively. (13 marks) The management of YY is considering to change the sales mix to 2 units of X and 2 units of Y. Do you agree with the change? Explain. (7 marks) YY Manufacturing Company with fixed costs $594,000 produces two products, Product X and Product Y. It has following information: Selling price Direct materials Direct labor for assembly Variable production overhead Required: i) ii) Per unit (X) $72 36 16 4 Per unit (Y) $120 55 25 5 Assuming sales mix is 4 units of X and 1 unit of Y, calculate breakeven point in units of product X and Y respectively. (13 marks) The management of YY is considering to change the sales mix to 2 units of X and 2 units of Y. Do you agree with the change? Explain. (7 marks)

Answer rating: 100% (QA)

i Breakeven point calculation Product X Selling price 72 Direct materials 36 Direct labor for assembly 16 Variable production overhead 4 Contribution ... View the full answer