LA Student Name: ID: Page Break Header Hesde CVP Analysis 1. Zara Builders Inc. produces two products, A and B. The following information is presented for both products: B Selling price per unit $33 $23 Variable cost per unit 21 11 Total fixed costs are $240,000. a. Calculate the contribution margin for each product/5 marks) We can calculate it easily by solving A and B For A For B 33 dollars 23 (11) (21) Selling price per unit -variable cost per unit Contribution margin for A 12 Contribution margin for b12 a Calculate break-even point in units of both A and B if the sales mix is 3 units of A for every unit of B (10 marks) unit $33 $23 Variable cost per unit 21 11 Total fixed costs are $240,000. a. Calculate the contribution margin for each product(5 marks) We can calculate it easily by solving A and B For A For B 33 dollars 121) 23 (11) Selling price per unit -variable cost per unit Contribution margin for A 12 Contribution margin for b 12 a. Calculate break-even point in units of both A and B if the sales mix is 3 units of A for every unit of B (10 marks) b. Determine the level of sales (in dollars) necessary to generate operating income (profit) of S260,000 (10 marks) Page Break