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

Explanation:Total sales revenue = (2,000 units x $10 per unit) + (3,000 units x $5 per unit) = $20,000Total variable costs = (2,000 units x $7 per unit) + (3,000 units x $3 per unit) = $11,250Contribution margin = $20,000 - $11,250 = $8,750Fixed costs = $9,000Net operating loss = $8,750 - $9,000 = $250

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