5DokntintExercise 3-15A (Algo) Multiple product break-even analysis LO 3-6Stuart Company manufactures two products. The budgeted per-unit contribution margin for each product follows:Supreme$ 130(88)$ 42Sales priceVariable cost per unitContribution margin per unitSuper$ 102(68)$ 34Stuart expects to incur annual fixed costs of $141,960. The relative sales mix of the products is 70 percent for Super and 30 percent forSupreme.Requireda. Determine the total number of products (units of Super and Supreme combined) Stuart must sell to break even.b. How many units each of Super and Supreme must Stuart sell to break even?

Break even want is the point where no problem so it is able to recover all its cost. this analysis…

Answered: 5 Dok nt int Exercise 3-15A (Algo)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6 Fanning Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Required Super $.92 (60) a. Total number of products b. Product Super b. Product Supreme $32 Supreme $ 127 Fanning expects to incur annual fixed costs of $199,100. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. (81) units units units $.46 a. Determine the total number of products (units of Super and Supreme combined) Fanning must sell to break even. b. How many units each of Super and Supreme must Fanning sell to break even? Note: For all requirements, do not round intermediate calculations.

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