6. X Corp. sells 3 products, A, B, and C. Their expected product mix is 2:5:1...

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6. X Corp. sells 3 products, A, B, and C. Their expected product mix is 2:5:1 for A, B, and C, respectively. Additional information is as follows: Product A Product B Product C Total Selling price $120 $152 $77 Variable cost per unit $75 $118 $48 Total fixed costs $2,750,000 Calculate the breakeven point in units and sales dollars for each product and in total. The manager of product C has the opportunity to sell an additional 20,000 units as a one time special order. Variable costs per unit will increase to $70 and additional fixed costs of $50,000 will be incurred. Should X Corp. make this sale? 6. X Corp. sells 3 products, A, B, and C. Their expected product mix is 2:5:1 for A, B, and C, respectively. Additional information is as follows: Product A Product B Product C Total Selling price $120 $152 $77 Variable cost per unit $75 $118 $48 Total fixed costs $2,750,000 Calculate the breakeven point in units and sales dollars for each product and in total. The manager of product C has the opportunity to sell an additional 20,000 units as a one time special order. Variable costs per unit will increase to $70 and additional fixed costs of $50,000 will be incurred. Should X Corp. make this sale?

Answer rating: 100% (QA)

To calculate the breakeven point for each product and in total we need to determine the contribution margin per unit and the contribution margin ratio ... View the full answer