Village Manufacturing
Village Manufacturing produces two types of products ? Card Games and Puzzles. The following information is available related to each product:
$\begin{array}{lrrr}
& \underline{ \text { Card Games }} & \underline{\text { Puzzles }} \
\text { Sales price per unit } & \$ 6.00 & \$ 15.00 \
\text { Variable costs per unit } & 2.00 & & 3.50
\end{array}$
60% of the products sold are Card Games and 40% are Puzzles.
-If total fixed costs are $24 500,how many Card Games need to be sold in order for the company to break even?

Question

Village Manufacturing
Village Manufacturing produces two types of products ? Card Games and Puzzles. The following information is available related to each product:
$\begin{array}{lrrr} 
& \underline{ \text { Card Games }} &  \underline{\text { Puzzles }} \
\text { Sales price per unit } & \$ 6.00 & \$ 15.00 \
\text { Variable costs per unit } & 2.00 & & 3.50
\end{array}$
60% of the products sold are Card Games and 40% are Puzzles.
-If total fixed costs are $24 500,how many Card Games need to be sold in order for the company to break even?

Quizplus · Accepted Answer

Explanation:Let x be the number of Card Games sold.Revenue from Card Games = $6xRevenue from Puzzles = $15(0.4x) = $6xTotal Revenue = $12xTotal Variable Costs = $2x + $3.5(0.4x) = $2.8xContribution Margin = $12x - $2.8x = $9.2xBreak-even point:$9.2x = $24,500x = 2,663Therefore, the company needs to sell 2,663 Card Games to break even.

Village Manufacturing Village Manufacturing Produces Two Types of Products 60% of the Products Sold Are Card Games and 40

Village Manufacturing
Village Manufacturing Produces Two Types of Products 60% of the Products Sold Are Card Games and 40