Gibson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 96 (64) a. Total number of products b. Product Super b. Product Supreme $32 Supreme $ 132 (86) Gibson expects to incur annual fixed costs of $155,660. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. units units units $46 Required a. Determine the total number of products (units of Super and Supreme combined) Gibson must sell to break even. b. How many units each of Super and Supreme must Gibson sell to break even? Note: For all requirements, do not round intermediate calculations.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Gibson Company manufactures two products. The budgeted per-unit contribution margin for each product follows:
Sales price
Variable cost per unit
Contribution margin per unit
Super
$ 96
(64)
a. Total number of products
b. Product Super
b. Product Supreme
$32
Supreme
$ 132
(86)
Gibson expects to incur annual fixed costs of $155,660. The relative sales mix of the products is 70 percent for Super and 30 percent
for Supreme.
units
units
units
$ 46
Required
a. Determine the total number of products (units of Super and Supreme combined) Gibson must sell to break even.
b. How many units each of Super and Supreme must Gibson sell to break even?
Note: For all requirements, do not round intermediate calculations.
Transcribed Image Text:Gibson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 96 (64) a. Total number of products b. Product Super b. Product Supreme $32 Supreme $ 132 (86) Gibson expects to incur annual fixed costs of $155,660. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. units units units $ 46 Required a. Determine the total number of products (units of Super and Supreme combined) Gibson must sell to break even. b. How many units each of Super and Supreme must Gibson sell to break even? Note: For all requirements, do not round intermediate calculations.
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