MA64 Problem: Cost Volume Profit Analysis – Konrad Inc.

MA64 Problem: Cost Volume Profit Analysis – Konrad Inc.

Konrad Inc. has three product lines, X, Y and Z. The contribution margin of X, Y and Z is $45,$25 and $28 respectively. Historically, the annual unit sales of X, Y, and Z have been 3000, 5000and 1,000. Konrad’s annual fixed costs are $249,600.Required:1. What is Konrad Inc.’s breakeven point in units, assuming the sales mix remains constant?How many units of X, Y and Z need to be sold to breakeven?