5 Dok nt int Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6 Stuart Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Supreme $ 130 (88) $ 42 Sales price. Variable cost per unit Contribution margin per unit Super $ 102 (68) $ 34 Stuart expects to incur annual fixed costs of $141,960. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Stuart must sell to break even. b. How many units each of Super and Supreme must Stuart sell to break even?
5 Dok nt int Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6 Stuart Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Supreme $ 130 (88) $ 42 Sales price. Variable cost per unit Contribution margin per unit Super $ 102 (68) $ 34 Stuart expects to incur annual fixed costs of $141,960. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Stuart must sell to break even. b. How many units each of Super and Supreme must Stuart sell to break even?
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter20: Variable Costing For Management Analysis
Section: Chapter Questions
Problem 20.22EX: Variable costing income statement and contribution margin analysis for a service company The actual...
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