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Please include the formula A Plus Company sells products both domestically and internationally. Fixed costs totaled $4,100,000 last year. In an effort to increase its
Please include the formula
A Plus Company sells products both domestically and internationally. Fixed costs totaled $4,100,000 last year. In an effort to increase its total sales volume, A Plus plans to spend an additional $1,310,000 in advertising next year. Expected average prices and variable costs appear below. Because of the increased advertising, A Plus expects to sell 315,000 units domestically and 210,000 units internationally next year. Domestic Requirements (a) Using the expected sales mix, determine the number of units that A Plus must sell in each market in order to earn income of $480,000 next year. International Price per unit 60 $ 40 Variable costs per unit 25 15 Requirement (a) Using the expected sales mix, determine the number of units that A Plus must sell in each market in order to earn income of $480,000 next year. Use the bundle approach. Begin by calculating the multiple to be used with this product mix. (Hereafter referred to as the Product Mix Multiple (PMM). Round your answer to one decimal place. Abbreviation used: CM = Contribution margin; FC = Fixed costs; PMM = Product mix multiple; SP = Sales price; VC = Variable costs; Dom = Domestic, Int. = International) Product mix = multiple (PMM) =Step by Step Solution
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