Lakers Company produces two products.The following information is available:
Total fixed costs are $234,000.Lakers plans to sell 21,000 units of Product X and 7,000 units of Product Y.
Required:
A)Compute the contribution margin for each product.
B)What is the expected net income?
C)Assume the sales mix is 3 units of Product X for every 1 unit of Product Y. What is the break-even point in units for each product?
D)Assume the sales mix is 3 units of Product X for every 2 units of Product Y. What is the break-even point in units for each product?

Question

Lakers Company produces two products.The following information is available:
  Total fixed costs are $234,000.Lakers plans to sell 21,000 units of Product X and 7,000 units of Product Y.
Required: 
A)Compute the contribution margin for each product. 
B)What is the expected net income? 
C)Assume the sales mix is 3 units of Product X for every 1 unit of Product Y. What is the break-even point in units for each product? 
D)Assume the sales mix is 3 units of Product X for every 2 units of Product Y. What is the break-even point in units for each product?

Quizplus · Accepted Answer

The Answer of Lakers Company produces two products.The following information is available:
  Total fixed costs are $234,000.Lakers plans to sell 21,000 units of Product X and 7,000 units of Product Y.
Required: 
A)Compute the contribution margin for each product. 
B)What is the expected net income? 
C)Assume the sales mix is 3 units of Product X for every 1 unit of Product Y. What is the break-even point in units for each product? 
D)Assume the sales mix is 3 units of Product X for every 2 units of Product Y. What is the break-even point in units for each product?

Lakers Company Produces Two Products