Break evenCompany has two products. Company plans to sell product A for $54 and product B for $78....

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Break evenCompany has two products. Company plans to sell product A for $54 and product B for $78. Purchases of product A are $36 and product B are $50. The company expects to sell 2 of product B for every 3 of product A. Fixed expenses are $9,680. How many products can be sold monthly to break even? Profit of $6,600?

David · Accepted Answer

ANSWER 
The contribution per unit of each product is computed below: 
  Product A Product B 
Selling price 54 78 
Cost price 36 50 
Contribution per unit 18 28
Sales are in the ratio of 3:

Break evenCompany has two products. Company plans to sell product A for $54 and product B for $78. Purchases of product A are $36 and product B are $50. The company expects to sell 2 of product B for...

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