Anna Inc. sells two products as follows: Product A Product B 3,800 4,750 Selling price per unit $300 $450 Variable costs per unit $120 $270 The company has the following fixed costs: Product A, $613,000, Product B, $1,023,000, and common fixed costs of $372,800. Units sold Using the above information answer the following questions. What is the package contribution margin? What is the break-even in packages? How many units of Product A are required to break-even? How many units of Product B are required to break-even?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...
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QUESTION:
Anna Inc. sells two products as follows:
Product A Product B
Units sold
3,800
4,750
Selling price per unit
$300
$450
Variable costs per unit $120
$270
The company has the following fixed costs: Product A, $613,000, Product B, $1,023,000, and common
fixed costs of $372,800.
Using the above information answer the following questions.
What is the package contribution margin?
What is the break-even in packages?
How many units of Product A are required to break-even?
How many units of Product B are required to break-even?
Transcribed Image Text:QUESTION: Anna Inc. sells two products as follows: Product A Product B Units sold 3,800 4,750 Selling price per unit $300 $450 Variable costs per unit $120 $270 The company has the following fixed costs: Product A, $613,000, Product B, $1,023,000, and common fixed costs of $372,800. Using the above information answer the following questions. What is the package contribution margin? What is the break-even in packages? How many units of Product A are required to break-even? How many units of Product B are required to break-even?
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