The sales mix of Palm Company is 5 units of A, 3 units of B,...
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Accounting
The sales mix of Palm Company is 5 units of A, 3 units of B, and 1 unit of C. Per unit sales prices for each product are $30, $40, and $50, respectively. Variable costs per unit are $14, $24, and $34, respectively. Fixed costs are $597,600. Required:
(a) Calculate the contribution margin per composite unit. (4 marks)
(b) Calculate the break-even point in units of each individual product.(3 marks)
(c) If pretax income before taxes of $295,200 is desired, how many units of A, B and C must be sold? (3 marks)
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