Answered: What is the package contribution…

What is the package contribution margin? HINT: this is a dollar value so please round to the nearest penny. A/ What is the break-even in units for both Product A and Product B together? A/

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...

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Question

Awla Ltd. sells two products as follows:
Product A Product B
Units sold
2,625
3,500
Selling price per unit
$400
$350
Variable costs per unit $160
$210
The company has the following fixed costs: Product A, $590,000, Product B,
$883,200, and common fixed costs of $293,200.

What is the package contribution margin?
HINT: this is a dollar value so please round to the nearest penny.
N
What is the break-even in units for both Product A and Product B together?
A
How many units of Product A are required to break-even?
HINT: remember the entry rules for units.
A
How many units of Product B are required to break-even?
HINT: remember the entry rules for units.
1

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