Please show work. Thanks. Marvin Corporation has the following information relat
ID: 2506152 • Letter: P
Question
Please show work. Thanks.
Marvin Corporation has the following information relating to their two products:
Product A
Product B
Units Sold
2,400
1,600
Selling Price Per Unit
$75.00
$60.00
Variable Cost Per Unit
$35.00
$30.00
Fixed costs are $25,200 per month.
Required
Calculate the total number of units that need to be sold to break-even.
# of Units to Break-Even ____________________________
Product A
Product B
Units Sold
2,400
1,600
Selling Price Per Unit
$75.00
$60.00
Variable Cost Per Unit
$35.00
$30.00
Explanation / Answer
Units: 2,400 + 1,600 = 4,000
Product A: 2,400/4,000 = 3/5
Product B: 1,600/4,000 = 2/5
For every 3 A