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Question - Rikki Company manufactures two products. The budgeted per-unit contribution margin for each product follows:
Super Supreme
Sales price $ 68 $ 94
Variable cost per unit (38) (44)
Contribution margin per unit $ 30 $ 50
Rikki expects to incur annual fixed costs of $540,000. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme.
Required
1. Determine the total number of products (units of Super and Supreme combined) Riku must sell to break even.
2. How many units each of Super and Supreme must Riku sell to break even?
(For all requirements, do not round intermediate calculations.)
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