1) A firm sells two different products, A and B. For each unit of B sold, the...

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1) A firm sells two different products, A and B. For each unit of B sold, the firm sells two units of A. Total fixed costs$1,260,000. Additional selling prices and cost information for both products follow:

Product

Selling

Price per unit

Variable

Costs per unit

A…….

$72

$40

B…….

Required:

(a) Calculate the contribution margin per composite unit.

(b) Calculate the break-even point in units of each individual product.

Sales Mix

Question 1



	Selling price	Variable cost	Contribution margin	Sales mix	Composite CM
Product A			0		0
Product B			0		0
Composite CM					0

Related Book For answer-question

Operations Research An Introduction

ISBN: 978-0132555937

9th edition

Authors: Hamdy A. Taha

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Posted Date: Mar 15, 2022 03:11 AM

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1) A firm sells two different products, A and B. For each unit of B sold, the...

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Solution 1 Contribution margin per composite unit 72 40 ... View the full answer

Operations Research An Introduction

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