Anna Inc. sells two products as follows: Product A Product B 4,750 $450 $270 3,800 Units...
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Anna Inc. sells two products as follows: Product A Product B 4,750 $450 $270 3,800 Units sold Selling price per unit $300 Variable costs per unit $120 The company has the following fixed costs: Product A, $613,000, Product B, $1,023,000, and common fixed costs of $372,800. Using the above information answer the following questions. What is the package contribution margin? What is the break-even in packages? How many units of Product A are required to break-even? How many units of Product B are required to break-even? Anna Inc. sells two products as follows: Product A Product B 4,750 $450 $270 3,800 Units sold Selling price per unit $300 Variable costs per unit $120 The company has the following fixed costs: Product A, $613,000, Product B, $1,023,000, and common fixed costs of $372,800. Using the above information answer the following questions. What is the package contribution margin? What is the break-even in packages? How many units of Product A are required to break-even? How many units of Product B are required to break-even?
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Answer rating: 100% (QA)
To calculate the package contribution margin we need to determine the total revenue and total variable costs for both products combined Total revenue Product A revenue Units sold Selling price per uni... View the full answer
Related Book For
Cost Management A Strategic Emphasis
ISBN: 978-0077733773
7th edition
Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins
Posted Date:
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