Sanchez Company makes and sells two models of dog houses,the Puppy Palace and the Canine Castle: $$\begin{array} { | l | l| r | l l | }
\hline & { \text { Puppy Palace } } & { \text { Canine Castle } } \
\hline \text { Sales price per unit } & \$ 50 & \$ 75 \
\hline \text { Variable cost per unit } & 30 & 50 \
\hline \text { Contribution margin per unit } & \$ 20 & \$ 25 \
\hline
\end{array}$$ Sanchez has determined that it would break even at an annual sales volume of 5,000 units,of which 75% would be Puppy Palaces.What is the amount of Sanchez's estimated annual fixed costs?

Question

Sanchez Company makes and sells two models of dog houses,the Puppy Palace and the Canine Castle: $$\begin{array} { | l | l| r | l l | } 
\hline &  { \text { Puppy Palace } } & { \text { Canine Castle } } \
\hline \text { Sales price per unit } & \$ 50 & \$  75 \
\hline \text { Variable cost per unit } &  30 & 50 \
\hline \text { Contribution margin per unit } & \$  20 & \$  25 \
\hline
\end{array}$$ Sanchez has determined that it would break even at an annual sales volume of 5,000 units,of which 75% would be Puppy Palaces.What is the amount of Sanchez's estimated annual fixed costs?

Quizplus · Accepted Answer

The Answer of Sanchez Company makes and sells two models of dog houses,the Puppy Palace and the Canine Castle: $$\begin{array} { | l | l| r | l l | } 
\hline &  { \text { Puppy Palace } } & { \text { Canine Castle } } \
\hline \text { Sales price per unit } & \$ 50 & \$  75 \
\hline \text { Variable cost per unit } &  30 & 50 \
\hline \text { Contribution margin per unit } & \$  20 & \$  25 \
\hline
\end{array}$$ Sanchez has determined that it would break even at an annual sales volume of 5,000 units,of which 75% would be Puppy Palaces.What is the amount of Sanchez's estimated annual fixed costs?

Sanchez Company Makes and Sells Two Models of Dog Houses,the