Question
Franklin Company manufactures two products. The budgeted per unit contribution margin for each product follows: Super Supreme Sales price $103 $121 Variable cost per unit
Franklin Company manufactures two products. The budgeted per unit contribution margin for each product follows:
Super Supreme
Sales price $103 $121
Variable cost per unit (56) (81)
Contribution margin per unit $ 47 $ 40
Franklin expects to incur annual fixed costs of $247,520. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Franklin must sell to break even. b. How many units each of Super and Supreme must Franklin sell to break even? (For all requirements, do not round intermediate calculations.)
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