Question 5 [15 points]
XYZ Co. sells toy figures, premium golf balls and umbrellas.
a) The sales price, variable cost and sales mix ratio is shown in the table below. Complete the table and find the overall unit contribution margin.
Product Sales Price per Unit Variable Cost per Unit Contribution Margin per Unit ($) Ratio (Mix) Contribution Margin per Product Totals ($)
Toy figures $40 $25 7
Premium golf balls $70 $35 4
Umbrellas $110 $50 1
Overall unit contribution margin
b) If annual fixed costs shared by the three products are $27,450, how many composite units will need to be sold in order for XYZ Co. to break even?
Break-even point in composite units = composite units
c) Complete the table and find the overall break-even point in sales dollars.
Product Sales Price per Unit Number of Units per Product Break-even Point per Unit in Sales ($)
Toy figures $40
Premium golf balls $70
Umbrellas $110
Overall break-even point
