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

Ans : Computation of contribution of sales mix

Contribution of sales mix = ( 33*0.6 ) + ( 46*0.4 )

= $38.2

Total Break even units

BEP = Fixed Cost / Contribution per unit

= $206,280 / $38.2

= 5,400 units

Benson must sell 5,400 units in total to break even.

Break even units of super and supreme

Super = 5,400 * 0.60 = 3,240 units

Supreme = 5,400 * 0.4 = 2,160 units

Ans : Benson must sell 3,240 units of super and 2,160 units of supreme to break even.

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