AB Company produces two Products: A and B. Product A has a contribution margin of $30 per unit. Product B has a contribution margin of $5 per unit. The sales mix is three units of product A for each two units of product B. The company total monthly fixed cost is $480,000. During the month, how many units should the company sell of each ?product to achieve a target operating income of $150,000 .units of product A and 10,600 units of product B 15,900 a O units of product A and 5,000 units of product B 30,000 b O .18,900units of product A and 12,600 units of product B .c O None of the choices given d O .units of product A and 11,600 units of product B 17,400 e O

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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AB Company produces two Products: A and B. Product A has a contribution margin of $30 per unit. Product B has a
contribution margin of $5 per unit. The sales mix is three units of product A for each two units of product B. The
company total monthly fixed cost is $480,000. During the month, how many units should the company sell of each
?product to achieve a target operating income of $150,000
.units of product A and 10,600 units of product B 15,900 a O
.units of product A and 5,000 units of product B 30,000 b O
.18,900units of product A and 12,600 units of product B .c O
None of the choices given d O
.units of product A and 11,600 units of product B 17,400 .e O
Transcribed Image Text:AB Company produces two Products: A and B. Product A has a contribution margin of $30 per unit. Product B has a contribution margin of $5 per unit. The sales mix is three units of product A for each two units of product B. The company total monthly fixed cost is $480,000. During the month, how many units should the company sell of each ?product to achieve a target operating income of $150,000 .units of product A and 10,600 units of product B 15,900 a O .units of product A and 5,000 units of product B 30,000 b O .18,900units of product A and 12,600 units of product B .c O None of the choices given d O .units of product A and 11,600 units of product B 17,400 .e O
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