Problem

Calculate the break-even point in the following sales mix, both in units and peson units

Column1 Product 1 Product 2 Product 3 Column7

Selling Price 30 20 35
Variable Cost per unit 18 10 20
Sales Mix % 20% 25% 55%
Total Fixed Cost 13,150.00

Solution

CM per unit 12 10 15
Weighted Average CM (WACM) 2.4 2.5 8.25 13.15

BEP in Units = Fixed Costs / WACM 1,000.00

Units sold 200.00 250.00 550.00
CM 2,400.00 2,500.00 8,250.00 13,150.00

Variable Income Statement

 Product
1 2 3 Total
Sales 6,000.00 5,000.00 19,250.00 30,250.00
Variable Cost 3,600.00 2,500.00 11,000.00 17,100.00
CM 2,400.00 2,500.00 8,250.00 13,150.00
Fixed Cost 13,150.00
Profit - Break-even