Bobby Co. sells two products, X and Y. Last year, Bobby sold 18,000 units of X\'
ID: 2565649 • Letter: B
Question
Bobby Co. sells two products, X and Y. Last year, Bobby sold 18,000 units of X's and 12,000 units of Y's. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products are provided below.
Product
Selling Price
Variable Cost per unit
Contribution Margin
per unit
X
$180
$100
$80
Y
$100
$60
$40
Assuming that last year’s fixed costs totaled $192,000. What was Bobby Co's break-even point in units of enterprise product "E"?
Question 20 options:
2,500 units
4,800 units
3,000 units
3,429 units
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Product
Selling Price
Variable Cost per unit
Contribution Margin
per unit
X
$180
$100
$80
Y
$100
$60
$40
Explanation / Answer
Ans B (option 2nd) 4800 units
Calculation of Bobby Co's break-even point in units of enterprise product Y:
Break even point(in units) = Fixed cost / Contribution per unit
= $192,000 / $40
= 4800 units