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

Question 117

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Bridges Corporation
Bridges Corporation manufactures and sells two products: A and B.
B.The overall company break-even point is found by dividing total fixed costs by the contribution margin on one unit of sales mix: $10,000/$20 = 500 units.The 500 units of sales mix contain 500 ´ 5 units of product for a total of 2,500.Of the 2,500 total units,2,000 are units of Product A and 500 are units of Product B.The projected information on these two products for the coming year is presented below:
                                            Product A \text {\underline{ Product A} }    Product B \text {\underline{ Product B} }
 Sales in units 4,0001,000 Sales price per unit $12$8 Variable costsper unit 84\begin{array}{lcc}\text { Sales in units } & 4,000 & 1,000 \\\text { Sales price per unit } & \$ 12 & \$ 8 \\\text { Variable costsper unit } & 8 & 4\end{array}
Total fixed costs for the company are projected at $10,000.B.The total contribution margin for one unit of sales mix would be $20.This consists of $16 of contribution margin from the 4 units of Product A and $4 of contribution margin from 1 unit of Product
Refer to Bridges Corporation.Compute Bridges Corporation's projected break-even point in total units.
The company anticipates a sales mix consisting of 4 units of Product A and 1 unit of ProductTotal fixed costs for the company are projected at $10,000.
Refer to Bridges Corporation.Compute Bridges Corporation's projected break-even point in total units.

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