Question
The Redco Company manufactures two products. Information about the two product lines is as follows: || ||Product A||Product B |Selling price per unity|$90|$40 |Variable costs
The Redco Company manufactures two products. Information about the two product lines is as follows: || ||Product A||Product B |Selling price per unity|$90|$40 |Variable costs per unit|$45|$15 |Contribution margin per unit|$45|$25 The company expects fixed costs to be $200,000. 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 Product A and Product B
Please do not copy from chegg otherwise i have to report the answer. Explain the answer throughly with showing each step of the calculation.
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