Finch Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super $99 Supreme $ 124 (65) (88) Sales price Variable cost per unit Contribution margin per unit $ 34 $36 Finch expects to incur annual fixed costs of $185,760. The relative sales mix of the products is 80 percent for Super and 20 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Finch must sell to break even. b. How many units each of Super and Supreme must Finch sell to break even?

Finch Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super $99 Supreme $ 124 (65) (88) Sales price Variable cost per unit Contribution margin per unit $ 34 $36 Finch expects to incur annual fixed costs of $185,760. The relative sales mix of the products is 80 percent for Super and 20 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Finch must sell to break even. b. How many units each of Super and Supreme must Finch sell to break even?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

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