Craylon Manufacturing Company produces two products, X and Y. The following information is presented for...
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Accounting
Craylon Manufacturing Company produces two products, X and Y. The following information is presented for both products:
X Y
Selling price per unit $40 $25
Variable cost per unit 25 15
Total fixed costs are $275,000.
Required:
a. Calculate the contribution margin for each product.
b. Calculate breakeven point in units of both X and Y if the sales mix is 3 units of X for every unit of Y.
c. Calculate breakeven volume in total dollars if the sales mix is 3 units of X for every 1 unit of Y.
d. (Assuming that Craylon has a marginal tax rate of 25%) Compute the total number of units required (of X and Y combined) to generate an after tax profit of $60,000.
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