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I am proud of How Hard You are Working (PHW) manufacturers two unique products: Product A and Product B. Information for each product is provided below: Unit Selling Price Unit Variable Cost Product A $52 $22 Product B $128 $38 Historically, 80% of all units sold are for Product A. PHW has total fixed costs of $264,600. Using the provided information, please answer the following questions. a.What is the bundle contribution margin? b.How many total units must be sold to break-even?

I am proud of How Hard You are Working (PHW) manufacturers two unique products: Product A and Product B. Information for each product is provided below: Unit Selling Price Unit Variable Cost Product A $52 $22 Product B $128 $38 Historically, 80% of all units sold are for Product A. PHW has total fixed costs of $264,600. Using the provided information, please answer the following questions. a.What is the bundle contribution margin? b.How many total units must be sold to break-even?

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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I am proud of How Hard You are Working (PHW) manufacturers two unique products: Product A and Product B. Information for each product is provided below: Unit Selling Price Unit Variable Cost Product A $52 $22 Product B $128 $38 Historically, 80% of all units sold are for Product A. PHW has total fixed costs of $264,600. Using the provided information, please answer the following questions. a.What is the bundle contribution margin? b.How many total units must be sold to break-even?
Transcribed Image Text:I am proud of How Hard You are Working (PHW) manufacturers two unique products: Product A and Product B. Information for each product is provided below: Unit Selling Price Unit Variable Cost Product A $52 $22 Product B $128 $38 Historically, 80% of all units sold are for Product A. PHW has total fixed costs of $264,600. Using the provided information, please answer the following questions. a.What is the bundle contribution margin? b.How many total units must be sold to break-even?
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