Moonbeam Corporation Moonbeam Corporation manufactures and sells two products: A and B. The operating results of the company are as follows:
In addition, the company incurred total fixed costs in the amount of $9,000.
Refer to Moonbeam Corporation. If the company would have sold a total of 6,000 units, consistent with CVP assumptions how many of those units would you expect to be Product B?

Question

Moonbeam Corporation Moonbeam Corporation manufactures and sells two products: A and B. The operating results of the company are as follows:
 In addition, the company incurred total fixed costs in the amount of $9,000.
Refer to Moonbeam Corporation. If the company would have sold a total of 6,000 units, consistent with CVP assumptions how many of those units would you expect to be Product B?

Quizplus · Accepted Answer

To determine the number of units of Product B sold, we need to use the contribution margin ratio of Product B, which is $20 / $40 = 0.5.

Using the contribution margin ratio, we can calculate the break-even point in terms of units of Product B:

$9,000 / (0.5 * $40) = 450 units of Product B

To determine how many units of Product B would be sold at a total sales level of 6,000 units, we can set up and solve the following equation:

450 + (0.4 * 6,000 - 450) = 3,600

Therefore, we would expect 3,600 units of Product B to be sold out of a total of 6,000 units. The answer is C.

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