Question
RST manufactures two products. Information about the two products are as follows: Product A Product B Selling price per unit $100 $50 Variable costs per
RST manufactures two products. Information about the two products are as follows:
|
| Product A | Product B |
| Selling price per unit | $100 | $50 |
| Variable costs per unit | $60 | $40 |
| Contribution margin per unit | $40 | $10 |
The company expects fixed costs to be $420,000. The firm expects 60% of its sales (in units) to be Product A (a sales mix of 3:2).
Required:
| A. | Calculate the contribution margin per package. |
| B. | Determine the break-even point in units for Products A and B. |
| C. | Determine the level of sales (in dollars) necessary to generate operating income of $200,000. |
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HRD Score Card 2500 Based On HRD Audit
Authors: T V Rao
1st Edition
8178298368, 978-8178298368
