Question: Oxford Company makes two products. The budgeted per-unit contribution margin for each product follows: Oxford expects to incur fixed costs of $390,000. The relative sales

Oxford Company makes two products. The budgeted per-unit for each product follows:
Oxford 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.
Deluxe Luxury
Sales price $40 $80
Variable cost per unit 24 50
per unit $16 $30
Required
a. Determine the total number of products (units of Deluxe and Luxury combined) Oxford must sell to break even.
b. How many units each of Deluxe and Luxury must Oxford sell to break even?

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