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How many units of each product must be sold

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Question - Company XYZ has annual fixed costs of $400,000. Product A sells for $175 per unit and it has a variable cost of $150 per unit.

1) What is the contribution margin per unit?

2) How many units have to be sold to break even?

3) If the target profit is $65,000, how many units musts be sold in total?

4) Product B is sold for $85 per unit and has a variable cost of $65 per unit. The sales mix of Product A to B is 3:1. How many units of each product must be sold to break even?

Reference no: EM133179610

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