Catelina Company manufactures two products.Information about the two products is as follows: $$\begin{array} { l r r }
& \text { Product A } & \text { Froduct B } \
\text { Selling price per unit } & \$ 80 & \$ 30 \
\text { Variable costs per unit } & 45 & 15 \
\text { Contribution margin per unit } & \$ 35 & \$ 15
\end{array}$$ The company expects fixed costs to be $189,000.The firm expects 60% of its sales (in units)to be Product A (a sales mix of 3:2).
A. $\quad$Calculate the contribution margin per package.
B. $\quad$Determine the break-even point in units for Products $A$ and $B$.
C. $\quad$Determine the level of sales (in dollars) necessary to generate operating income of $\$ 135,000$.

Question

Catelina Company manufactures two products.Information about the two products is as follows: $$\begin{array} { l r r } 
& \text { Product A } & \text { Froduct B } \
\text { Selling price per unit } & \$ 80 & \$ 30 \
\text { Variable costs per unit } & 45 & 15 \
\text { Contribution margin per unit } & \$ 35 & \$ 15
\end{array}$$ The company expects fixed costs to be $189,000.The firm expects 60% of its sales (in units)to be Product A (a sales mix of 3:2). 
A. $\quad$Calculate the contribution margin per package.
B. $\quad$Determine the break-even point in units for Products $A$ and $B$.
C. $\quad$Determine the level of sales (in dollars) necessary to generate operating income of $\$ 135,000$.

Quizplus · Accepted Answer

The Answer of Catelina Company manufactures two products.Information about the two products is as follows: $$\begin{array} { l r r } 
& \text { Product A } & \text { Froduct B } \
\text { Selling price per unit } & \$ 80 & \$ 30 \
\text { Variable costs per unit } & 45 & 15 \
\text { Contribution margin per unit } & \$ 35 & \$ 15
\end{array}$$ The company expects fixed costs to be $189,000.The firm expects 60% of its sales (in units)to be Product A (a sales mix of 3:2). 
A. $\quad$Calculate the contribution margin per package.
B. $\quad$Determine the break-even point in units for Products $A$ and $B$.
C. $\quad$Determine the level of sales (in dollars) necessary to generate operating income of $\$ 135,000$.

Catelina Company Manufactures Two Products The Company Expects Fixed Costs to Be $189,000