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Question 11 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 60% basic models and 40% deluxe models. Total fixed costs for the year are $88,000. How many basic and deluxe units must Company L sell to make a profit of $66,000?   Basic model: 1,140 units; deluxe model: 760 units Basic model: 1,050 units; deluxe model: 700 units Basic model: 700 units; deluxe model: 1050 units Basic model: 760 units; deluxe model: 1,140 units

Question 11 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 60% basic models and 40% deluxe models. Total fixed costs for the year are $88,000. How many basic and deluxe units must Company L sell to make a profit of $66,000?   Basic model: 1,140 units; deluxe model: 760 units Basic model: 1,050 units; deluxe model: 700 units Basic model: 700 units; deluxe model: 1050 units Basic model: 760 units; deluxe model: 1,140 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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Question 11
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 60% basic models and 40% deluxe models. Total fixed costs for the year are $88,000. How many basic and deluxe units must Company L sell to make a profit of $66,000?

 

Basic model: 1,140 units; deluxe model: 760 units


Basic model: 1,050 units; deluxe model: 700 units


Basic model: 700 units; deluxe model: 1050 units


Basic model: 760 units; deluxe model: 1,140 units

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