Yurus Manufacturing Company produces two products, X and Y. The following inform

ID: 2593789 • Letter: Y

Question

Yurus Manufacturing Company produces two products, X and Y. The following information is presented for both products:

Total fixed costs = $234,000

Answer each of the following questions and show all work:

Assume the sales mix is units of X for every unit of Y:

A.) What is the weighted revenue per unit of composite average product?

B.) What is the weighted average variable cost?

C.) What is the weighted contribution margin per unit of composite average product?

D.) What is the break-even point in units of product X?

E.) What is the break-even point in units of product Y?

Product X Product Y Selling price per unit $36 $24 Variable cost per unit $28 $12

It has been assumed that sales mix Ratio is 1 Unit of X for every 1 Unit of Y.

A.) Weighted revenue per unit of Composite average product:

($36+$24)/2= $30

B.) Weighted average variable cost:

($28+$12)/2= $20

C.) Contribution Per Unit

Of Product X = 36-28 = $8

Of Product Y = 24-12 = $12

Weighted contribution margin per unit :($8+$12)/2= $10.

D. ) Break-even point in units of product X :

=Total Fixed Cost/Contribution per Unit =$234,000/$8

= 29250 Units Of Product X.

E. ) Break-even point in units of product Y

= $234000/$12

= 19500 Units of Products of Y

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