Question
Riku Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super Supreme Sales price $ 68 $ 94 Variable cost per
Riku 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 | ||||
Riku expects 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) Riku must sell to break even.
How many units each of Super and Supreme must Riku sell to break even?
(For all requirements, do not round intermediate calculations.)
| |||||||||||||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
ISO 27001 Controls A Guide To Implementing And Auditing
Authors: IT Governance
1st Edition
1787781445, 978-1787781443
