Figg Inc. has fixed costs of $420,000. The unit selling price, variable cost per unit, and contribution

Question:

Figg Inc. has fixed costs of $420,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products are provided below.

Product .Selling Price.Variable Cost per Unit .contribution margin per Unit

L$100$80$20

M 80 62 18

The sales mix for products L and M is 60% and 40%, respectively. Determine the break even point in units of L and M.

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...