Question: Pyne sells two products: Product A has a contribution margin of $75 and Product B has a contribution margin of $200. Total fixed costs are
Pyne sells two products: Product A has a contribution margin of $75 and Product B has a contribution margin of $200. Total fixed costs are $96250 for the year. The sales mix is 60% of Product A for 40% of Product B. Required: A - What is the break-even number of Product A and Product B ? (2 marks) B - What is the total break-even in dollar? (2 marks) C- What is the break-even number of Product A and Product B if the sales mix is 30% of product A for 70% of product B? ( 2 marks)
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