Yurus Manufacturing Company produces two products, X and Y. The following information is presented for both products:
X Y
Selling price per unit $36 $24
Variable cost per unit 28 1
Total fixed costs $234,000
Required:
Assume the sales mix is 3 units of X for every unit of Y:
a. What is the weighted revenue per unit of composite average product, the weighted average variable cost, and the weighted contribution margin per unit of composite average product?
b. What is the break-even point in units of both X and Y?
a. $36 (0.75 ) + $24(0.25 ) = $33 weighted revenue per unit of composite product
$28 (0.75 ) + $12(0.25 ) = $24 weighted average variable cost
$ 9 contribution margin per unit of composite product
b. $234,000/$9 = 26,000 units
X: 26,000 units × 0.75 = 19,500 units
Y: 26,000 units × 0.25 = 6,500 units
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