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The Noble Company manufactures two products. Information about the two products is as follows: Product A Product B Selling price per unit $80 $30 Variable

The Noble Company manufactures two products. Information about the two products is as follows:

Product A Product B
Selling price per unit $80 $30
Variable costs per unit 45 15
Contribution margin per unit $35 $15

The company expects the fixed costs to be $189,000. The firm expects 60% of its sales (in units) to be of 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 Product A and Product B.

Product A units
Product B units

C. Determine the level of sales (in dollars) necessary to generate an operating income of $135,000.

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