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A B C D E F G H K 1 Company XYZ has annual fixed costs of $400,000. Product A sells for $175 per unit

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A B C D E F G H K 1 Company XYZ has annual fixed costs of $400,000. Product A sells for $175 per unit and it has a variable cost of $150 per unit. 2 3 1) What is the contribution margin per unit? (2%) 4 2) How many units have to be sold to break even? (3%) 6 + 7 3) If the target profit is $65,000, how many units muts be sold in total? (5%) 8 9 4) Product B is sold for $85 per unit and has a variable cost of $65 per unit. The sales mix of Product A to B is 3:1. How many units of each product must be sold to break even? (10%) 11 12 3 14 Question 1 (20%) Question 2 (30%) Question 3 (25%) Question 4 (15%) Question 5

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