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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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