How much is Korn's expected breakeven sales in dollars?
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Korn Company sells two products as follows:
Selling Price Per Unit Variable Expense Per Unit
Product Y $120 $70
Product Z $500 $200
fixed expenses total $300,000 annually. The expected sales mix in units is 60% for Product Y and 40% for Product . How much is Korn's expected break-even sales in dollars?
a $300,000
b $420,000
c $475,000
d $544,000
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Marginal contribution of Y is MCy = 120-70 = 50,
and MC of Z is MCz = 500-200=300,
At the break even point, ...
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