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Stuart Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Var
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Answer #1

Correct Answer:

a

Total number of products

4200

B

Product Super

1680

Product Supreme

2520

Working:

Super

Supreme

Total

sales price

$ 99

$ 126

Less: variable cost

$ 69

$ 85

Contribution margin

$ 30

$ 41

Sales mix %

60%

40%

Weighted average contribution margin

$ 18

$ 16

$ 34

Fixed cost

$ 144,480

Breakeven sale in units

4200

A

B

C=A*B

Product

Sales Mix

Breakeven sale in units

Break-even sales per product

Super

40%

4200

1680

Supreme

60%

4200

2520

End of Answer.

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