Whiting Company sells a mix of three related products. Total fixed costs are $144,000. The following additional information is available for Whiting Company.?Sales MixVariable Cost/UnitSales Price/UnitX4$4$9Y4$8$14Z2$7$15Determine the company's break-even point in composite units.
What will be an ideal response?
Selling price of a composite unit
| 4 units of X @ $9 per unit | $36 |
| 4 units of Y @ $14 per unit | 56 |
| 2 units of Z @ $15 per unit | 30 |
| Selling price of a composite unit | $122 |
| 4 units of X @ $4 per unit | $16 |
| 4 units of Y @ $8 per unit | 32 |
| 2 units of Z @ $7 per unit | 14 |
| Variable costs of a composite unit | $62 |
| Contribution margin per composite unit | $60 |
Break-even point in composite units = $144,000 / $60 = 2,400 composite units
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