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Rikki Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super Supreme Sales price $ 68 $ 94 Variable cost per
Rikki Company manufactures two products. The budgeted per-unit contribution margin for each product follows:
Super Supreme
Sales price $ 68 $ 94
Variable cost per unit (38 ) (44 )
Contribution margin per unit $ 30 $ 50
Rikkiexpects to incur annual fixed costs of $540,000. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme.
Required
- Determine the total number of products (units of Super and Supreme combined) Rikumust sell to break even.
- How many units each of Super and Supreme must Rikusell to break even?
(For all requirements, do not round intermediate calculations.)
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