The Noble Company manufactures two products. Information about the two products is as follows: Product A Product
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Question:
The Noble Company manufactures two products. Information about the two products is as follows:
| Product A | Product B |
Selling price per unit | $80 | $30 |
Variable costs per unit | $45 | $15 |
Contribution margin per unit | $35 | $15 |
The company expects fixed costs to be $189,000. the firm expects 60% of its sales (in units) to be Product A ( a sales mix of 3:2).
Requirements:
a. Calculate the contribution margin per package
b. Determine the breakeven point in units for products A and B.
c. Determine the level of sales (in dollars) necessary to generate operating income of $135,000.
Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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