Moonbeam Corporation Moonbeam Corporation manufactures and sells two products: A and B The operating results of the company are as follows: $\begin{array}{lll}
&\text{Product A}&\text{Product B}\\hline
\text { Sales in units } & 2,000 & 3,000 \
\text { Sales price per unit } & \$ 10 & \$ 5 \
\text { Variable costs per unit } & 7 & 3
\end{array}$ In addition,the company incurred total fixed costs in the amount of $9,000.
Refer to Moonbeam Corporation.How many units would the company have needed to sell to produce a profit of $12,000?
A)8,750
B)20,000
C)10,000
D)8,400

Question

Quizplus · Accepted Answer

**Explanation:**To calculate the number of units needed to produce a profit of $12,000, we can use the following formula:Total units needed = (Fixed costs + Profit) / (Contribution margin per unit)Contribution margin per unit = Sales price per unit - Variable costs per unitFor Product A:Contribution margin per unit = $10 - $7 = $3For Product B:Contribution margin per unit = $5 - $3 = $2Total contribution margin = (Contribution margin per unit for Product A * Units of Product A) + (Contribution margin per unit for Product B * Units of Product B)Total contribution margin = ($3 * 2,000) + ($2 * 3,000) = $12,000Total units needed = ($9,000 + $12,000) / $12,000 = 8,750 units

Moonbeam Corporation Moonbeam Corporation Manufactures and Sells Two Products: a and B