5. Mikell Company sells only two products, Product A and Product B. ...

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Accounting

5. Mikell Company sells only two products, Product A and Product B.
Product A Product B Total
Selling price $4050
Variable cost per unit $2440
Total fixed costs 840,000
Required (10 points):
a. What is the breakeven point in units for each product assuming the sales mix is 2 units of Product A for each unit of Product B?
b. What is the break even point in units for each product assuming the sales mix is 1 unit of Product A for each unit of Product B?
c. What is the explanation for the difference between the two break even points?

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