Sanchez Company makes and sells two models of dog houses,the Puppy Palace and the Canine Castle:
$$\begin{array} { l c r }
& \text { Puppy Palace } & \text { Carine Castle } \
\text { Sales price per unit } & \$ 50 & \$ 75 \
\text { Variable cost per unit } & 30 & 50 \
\text { Contribution margin per unit } & \$ 20 & \$ 25
\end{array}$$ 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:
 $$\begin{array} { l c r } 
& \text { Puppy Palace } & \text { Carine Castle } \
\text { Sales price per unit } & \$ 50 & \$ 75 \
\text { Variable cost per unit } & 30 & 50 \
\text { Contribution margin per unit } & \$ 20 & \$ 25
\end{array}$$ 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:
 $$\begin{array} { l c r } 
& \text { Puppy Palace } & \text { Carine Castle } \
\text { Sales price per unit } & \$ 50 & \$ 75 \
\text { Variable cost per unit } & 30 & 50 \
\text { Contribution margin per unit } & \$ 20 & \$ 25
\end{array}$$ 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