Surfside Corporation
Surfside Corporation manufactures and sells two products: A and B.The operating results of the company are as follows:
$\text {\underline{ Product $ A $} }$ $\text {\underline{ Procluct B} }$
$\begin{array}{lll}
\text { Sales in units } & 2,000 & 3,000 \
\text { Sales price per unit } & \$ 10 & \$ 5 \
\text { Variable costs per unit } & 7 & 3
\end{array}$

In addition,the company incurred total fixed costs in the amount of $9,000.

Question

Surfside Corporation
Surfside Corporation manufactures and sells two products: A and B.The operating results of the company are as follows:
                                              $\text {\underline{ Product $ A $} }$ $\text {\underline{ Procluct B} }$
$\begin{array}{lll}
\text { Sales in units } & 2,000 & 3,000 \
\text { Sales price per unit } & \$ 10 & \$ 5 \
\text { Variable costs per unit } & 7 & 3
\end{array}$

In addition,the company incurred total fixed costs in the amount of $9,000.

Quizplus · Accepted Answer

To calculate the total profit, first, we find the contribution margin per unit for each product, then the total contribution margin, and finally subtract the fixed costs.For Product A:- Contribution margin per unit = Sales price per unit - Variable costs per unit = $10 - $7 = $3- Total contribution margin = Contribution margin per unit * Sales in units = $3 * 2000 = $6000For Product B:- Contribution margin per unit = Sales price per unit - Variable costs per unit = $5 - $3 = $2- Total contribution margin = Contribution margin per unit * Sales in units = $2 * 3000 = $6000Total contribution margin for both products = $6000 (A) + $6000 (B) = $12000Total profit = Total contribution margin - Total fixed costs = $12000 - $9000 = $3000However, none of the options match the calculated total profit of $3000, indicating a possible mistake in the calculation or misunderstanding of the question as it was presented. Given the options and the calculations, none directly match the expected outcome based on the provided data and standard profit calculation methods.

Surfside Corporation Surfside Corporation Manufactures and Sells Two Products: a and B.The

Surfside Corporation
Surfside Corporation Manufactures and Sells Two Products: a and B.The