Accounting homework please, I'd like to understand this

Posted on 2014-04-01 07:15:00 in Accounting by KITTIES

New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $200,000, and the sales mix is 80% MP3 players and 20% satellite radios. The unit selling price and the unit variable cost for each product are as follows:

Products Unit Selling Price Unit Variable Cost

MP3 players $60 $50

Satellite radios 150 90

a. Compute the break-even sales (units) for both products combined.

___________units

b. How many units of each product, MP3 players and satellite radios, would be sold at the break-even point?

MP3 players _________units

Satellite radios _________units

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