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?

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?

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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Question

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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Step 1: Contribution Margin:

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Step 2: Package contribution margin:

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Step 3: Break-even in packages:

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Step 4: Units of Product A are required to break-even:

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Step 5: Units of Product B are required to break-even:

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Please Introduction and explanation and proper solution please without plagiarism
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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