How to calculate sales mix. My professor said to use ratios 2/3 and 1/3 for Product M and Q respectively but where does the 3 come from?
Valley company sells two products. Product M sells for $12 and has variable costs per unit of $7. Product Q's selling price and variable costs are $15 and $10 respectively. If fixed costs are $60,000 and Valley sells twice as many units of Product M as Product Q, what is the BEP in units for Product M?