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Question
Joseph Co. has three products A, B, and C, and its fixed costs are $69,000. The sales mix for its products are 3 units of A, 4 units of B, and 1 unit of C. Information about the three products follows:
| A | B | C | |||
| Projected sales in dollars | $192,000 | $192,000 | $64,000 | ||
| Selling price per unit | $40 | $30 | $40 | ||
| Contribution margin ratio | 30% | 35% | 35% |
a. Calculate the company's break-even point in composite units and sales dollars.
b. Calculate the number of units of each individual product to be sold at the break-even point.
Answer
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