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Varigon Co. produces and sells three productsHousehold, Commercial, and Industrial, and has total fixed costs of $52,000. Sales and cost data follow: Household Commercial Industrial

Varigon Co. produces and sells three products–Household, Commercial, and Industrial, and has total fixed costs of $52,000. Sales and cost data follow:

                                        Household        Commercial     Industrial

Sales price per unit……………… $6                $8                 $10

Variable costs per unit…………… 4                  6                     7

Sales mix……………..…………     3                 2                     1

Calculate the break-even point in composite units.

Question 2
Selling priceVariable costContribution marginSales mixComposite CM
Household00
Commercial00
Industrial00
Composite CM

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