Homework SourseProblem 2 You examine the financial statements of a firm and
Problem #2
You examine the financial statements of a firm and find that for every unit of Product Y sold, the firm sells 1.5 units of product X. The sales price and variable cost per unit for Product X are $100 and $70, respectively; the sales price and variable cost per unit for Product Y are $80 and $60, respectively. Assuming a constant product mix and fixed costs of $260,000, how many of each product line must be sold to break even? What is total sales revenue(in dollars) at the break-even point? Show your work
You examine the financial statements of a firm and find that for every unit of Product Y sold, the firm sells 1.5 units of product X. The sales price and variable cost per unit for Product X are $100 and $70, respectively; the sales price and variable cost per unit for Product Y are $80 and $60, respectively. Assuming a constant product mix and fixed costs of $260,000, how many of each product line must be sold to break even? What is total sales revenue(in dollars) at the break-even point? Show your work
