Anna Inc. sells two products as follows:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Entry Rules:
For units round your answer up.
Examples:
If your answer is 281.01 units, enter 282
If your answer is 281.42 units, enter 282
If your answer is 281.00 units, enter 281
For dollars round to the nearest PENNY.
Examples:
If your answer is $504.472, enter 504.47
If your answer is $504.476, enter $504.48
If your answer is $504.000, enter 504.00
Never enter $ or , when inputting numerical answers
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 $410,000.
Using the above information answer the following questions.
What is the package contribution margin?
HINT: this is a dollar value so please round to the nearest penny.
1539000
What is the break-even in units for both Product A and Product B together?
11367
How many units of Product A are required to break-even?
HINT: remember the entry rules for units.
5052.
How many units of Product B are required to break-even?
HINT: remember the entry rules for units.
6315
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