Tanaka Company manufactures two products. The budgeted per-unit contribution margin for each product follows:

Tanaka expects to incur annual fixed costs of $309,000. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme.

Required
a. Determine the total number of products (units of Super and Supreme combined) Tanaka must sell to break even.
b. How many units each of Super and Supreme must Tanaka sell to breakeven?

Transcribed Image Text:

Super $ 85 (31) $ 54 Supreme Sales price Variable cost per unit Contribution margin per unit $125 (45) S 80