Catelina Company manufactures two products.Information about the two products is as follows:
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).
$\begin{array}{lrr}
& \text { Product A } & \text { Froduct B } \
\text { Selling price per unit } & \$ 80 & \$ 30 \
\text { Variable costs per unit } & 45 & 15 \
\text { Contribution margin ner unit } & \$ 35 & \$ 15
\end{array}$ A. Calculate the contribution margin per package.
B. Determine the break-even point in units for Products $A$ and $B$.
C. 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:
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).
 $\begin{array}{lrr}
& \text { Product A } & \text { Froduct B } \
\text { Selling price per unit } & \$ 80 & \$ 30 \
\text { Variable costs per unit } & 45 & 15 \
\text { Contribution margin ner unit } & \$ 35 & \$ 15
\end{array}$ A. Calculate the contribution margin per package.
B. Determine the break-even point in units for Products $A$ and $B$.
C. 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:
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).
 $\begin{array}{lrr}
& \text { Product A } & \text { Froduct B } \
\text { Selling price per unit } & \$ 80 & \$ 30 \
\text { Variable costs per unit } & 45 & 15 \
\text { Contribution margin ner unit } & \$ 35 & \$ 15
\end{array}$ A. Calculate the contribution margin per package.
B. Determine the break-even point in units for Products $A$ and $B$.
C. Determine the level of sales (in dollars) necessary to generate operating income of $\$ 135,000$.

Catelina Company Manufactures Two Products A Calculate the Contribution Margin Per Package