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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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?
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