The Noble Company manufactures two products. Information about the two products are as follows: Product A Product
Question:
The Noble Company manufactures two products. Information about the two products are as follows:
Product A Product B
Selling price per unit $80 $30
Variable cost per unit $45 $15
Contribution margin per unit $35 $15
The company expects fixed costs to be $189,000. The firm expects 60 percent of its sales (in units) to be Product B (a sales mix of 3:2).
Required: A. Calculate the contribution margin per package. $____
B. Determine the break-even point in units for Products A and B.
Product A ____ units
Product B ____ units
C. Determine the level of sales (in dollars) necessary to generate operating income of $135,000. $ ____
Accounting What the Numbers Mean
ISBN: 978-0078025297
10th edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele