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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: Sales
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: Sales price Super $ 92 Supreme $ 126 Variable cost per unit (65) (90) Contribution margin per unit $ 27 $ 36 Stuart expects to incur annual fixed costs of $126,720. The relative sales mix of the products is 80 percent for Super and 20 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? Note: For all requirements, do not round intermediate calculations. a. Total number of products b. Product Super b. Product Supreme units units units
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