The Noble Company manufactures two products. Information about the two products are as follows: Product A Product B Selling price per unit $80 $30 Variable cost per unit $45 $15 $15 Contribution margin per unit $35 The company expects fixed costs to be $189,000. The firm expects 60% of its sales (in units) to be Product A (a sales mix of 3:2). Required: A. Calculate the contribution margin per package. B. Determine the break-even point in units for Products A and B. C. Determine the level of sales (in dollars) necessary to generate an operating income of $135,000.

The Noble Company manufactures two products. Information about the two products are as follows: Product A Product B Selling price per unit $80 $30 Variable cost per unit $45 $15 $15 Contribution margin per unit $35 The company expects fixed costs to be $189,000. The firm expects 60% of its sales (in units) to be Product A (a sales mix of 3:2). Required: A. Calculate the contribution margin per package. B. Determine the break-even point in units for Products A and B. C. Determine the level of sales (in dollars) necessary to generate an operating income of $135,000.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 3CE: Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins...

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Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
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The Noble Company manufactures two products. Information about the two products is as follows: Product A Product B Selling price per unit $80 $30 Variable costs per unit 45 15 Contribution margin per unit $35 $15 The company expects the fixed costs to be $189,000. The firm expects 60% of its sales (in units) to be of Product A (a sales mix of 3:2). Required: A. Calculate the contribution margin per package.$fill in the blank 1 B. Determine the break-even point in units for Product A and Product B. Product A fill in the blank 2 units Product B fill in the blank 3 units C. Determine the level of sales (in dollars) necessary to generate an operating income of $135,000.$fill in the blank 4
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Anna Inc. sells two products as follows: Product A Product B Units sold 3,800 4,750 Selling price per unit $300 $450 Variable costs per unit $120 $270 The company has the following fixed costs: Product A, $613,000, Product B, $1,023,000, and common fixed costs of $372,800. Using the above information answer the following questions. What is the package contribution margin? What is the break-even in packages? How many units of Product A are required to break-even? How many units of Product B are required to break-even?
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