Question
Vernon Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super Supreme Sales price $ 93 $ 134 Variable cost per
Vernon Company manufactures two products. The budgeted per-unit contribution margin for each product follows:
| Super | Supreme | |||||||
| Sales price | $ | 93 | $ | 134 | ||||
| Variable cost per unit | (67 | ) | (82 | ) | ||||
| Contribution margin per unit | $ | 26 | $ | 52 | ||||
Vernon expects to incur annual fixed costs of $192,660. 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) Vernon must sell to break even.
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How many units each of Super and Supreme must Vernon sell to break even?
(For all requirements, do not round intermediate calculations.)
|
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European Financial Reporting Adapting To A Changing World
Authors: J. Flower
2nd Edition
0333685180, 9780333685181
