I am proud of How Hard You are Working (PHW) manufacturers two unique products: Product A and Product B. Information for each product is provided below: Unit Selling Price Unit Variable Cost Product A $52 $22 Product B $128 $38 Historically, 80% of all units sold are for Product A. PHW has total fixed costs of $264,600. Using the provided information, please answer the following questions. a.What is the bundle contribution margin? b.How many total units must be sold to break-even?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 12EB: Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost...
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I am proud of How Hard You are
Working (PHW) manufacturers two
unique products: Product A and
Product B. Information for each
product is provided below:
Unit Selling
Price
Unit Variable
Cost
Product
A
$52
$22
Product
B
$128
$38
Historically, 80% of all units sold are for
Product A. PHW has total fixed costs of
$264,600. Using the provided
information, please answer the
following questions.
a.What is the bundle contribution
margin?
b.How many total units must be sold to
break-even?
Transcribed Image Text:I am proud of How Hard You are Working (PHW) manufacturers two unique products: Product A and Product B. Information for each product is provided below: Unit Selling Price Unit Variable Cost Product A $52 $22 Product B $128 $38 Historically, 80% of all units sold are for Product A. PHW has total fixed costs of $264,600. Using the provided information, please answer the following questions. a.What is the bundle contribution margin? b.How many total units must be sold to break-even?
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