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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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