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Company L sells a product in two models. The basic model has a contribution margin per unit of $80 and the deluxe model has has a contribution margin per unit of $100. Its typical sales mix is 80% basic models and 20% deluxe models. Total fixed costs for the year are $105,000. How many basic and deluxe units must Company L sell to make a profit of $147,000?   Basic model: 1,800 units; deluxe model: 450 units Basic model: 2,400 units; deluxe model: 600 units Basic model: 2,000 units; deluxe model: 500 units Basic model: 1,600 units; deluxe model: 400 units

Company L sells a product in two models. The basic model has a contribution margin per unit of $80 and the deluxe model has has a contribution margin per unit of $100. Its typical sales mix is 80% basic models and 20% deluxe models. Total fixed costs for the year are $105,000. How many basic and deluxe units must Company L sell to make a profit of $147,000?   Basic model: 1,800 units; deluxe model: 450 units Basic model: 2,400 units; deluxe model: 600 units Basic model: 2,000 units; deluxe model: 500 units Basic model: 1,600 units; deluxe model: 400 units

FINANCIAL ACCOUNTING
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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Company L sells a product in two models. The basic model has a contribution margin per unit of $80 and the deluxe model has has a contribution margin per unit of $100. Its typical sales mix is 80% basic models and 20% deluxe models. Total fixed costs for the year are $105,000. How many basic and deluxe units must Company L sell to make a profit of $147,000?

 

Basic model: 1,800 units; deluxe model: 450 units

Basic model: 2,400 units; deluxe model: 600 units

Basic model: 2,000 units; deluxe model: 500 units

Basic model: 1,600 units; deluxe model: 400 units

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