Question

Rusty co. sells two products, x and y. last year, rusty sold 5,000 units of x and 35,000 units of y. related data are: unit selling unit variable unit contribution product price cost margin x $110.00 $70.00 $40.00 y 70.00 50.00 20.00 what was rusty co.'s sales mix last year?
a. 60% x, 40% y


b. 30% x, 70% y


c. 12.5% x, 87.5% y


d. 58% x, 42% y

Answer 1

Answer:

c. 12.5% x, 87.5% y

Step-by-step explanation:

Sales mix is the relative proportion of a business's products that are sold.

This is important because different products have different profitability. So it enables the business make a more profitable decision.

Last year, Rusty sold 5,000 units of x and 35,000 units of y.

Total Units Sold=5000+35000=40000

Product x Proportion of Sales= $A=\frac{5000}{40000}$

Percentage of Total Sales=$A=\frac{5000}{40000}X100$=12.5%

Product y Proportion of Sales= $A=\frac{35000}{40000}$

Percentage of Total Sales=$A=\frac{35000}{40000}X100$=87.5%

Sales Mix therefore is 12.5% x, 87.5%y