Required a. Determine the total number of products (units of Super and Supreme combined) Fanning must sell to break even b. How many units each of Super and Supreme must Fanning sell to break even? Note: For all requirements, do not round intermediate calculations. a Total number of products b. Product Super b. Product Supreme units units units

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6
Fanning Company manufactures two products. The budgeted per-unit contribution margin for each product follows:
Sales price
Variable cost per unit
Contribution margin per unit
Required
Super
$.92
(60)
a. Total number of products
b. Product Super
b. Product Supreme
$32
Supreme
$ 127
Fanning expects to incur annual fixed costs of $199,100. The relative sales mix of the products is 70 percent for Super and 30 percent
for Supreme.
(81)
units
units
units
$.46
a. Determine the total number of products (units of Super and Supreme combined) Fanning must sell to break even.
b. How many units each of Super and Supreme must Fanning sell to break even?
Note: For all requirements, do not round intermediate calculations.
Transcribed Image Text:Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6 Fanning Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Required Super $.92 (60) a. Total number of products b. Product Super b. Product Supreme $32 Supreme $ 127 Fanning expects to incur annual fixed costs of $199,100. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. (81) units units units $.46 a. Determine the total number of products (units of Super and Supreme combined) Fanning must sell to break even. b. How many units each of Super and Supreme must Fanning sell to break even? Note: For all requirements, do not round intermediate calculations.
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