fixed cost / (cm product A + 3 x cm product B)
10.) If 2 units of B are sold for every one unit of A the firm’s break-even point in units of B would be calculated as: step 1: breakeven in composite units = fixed cost / (cont margin for product A + 2 x cont margin for product B) step 2: Breakeven in units B is 2 times the breakeven in composite units since there were two units of B and one of A for each composite unit. Breakeven in units A is the same as the number of composite units breakeven.
Note: If 3 units of B are sold for every 1 of A follow the steps above but insert 3 instead of 2 into the formulas.
QUESTION 1Selling price per unit= $83Variable cost per unit=$71Fixed cost=$10479Target profit= $31327Number of units= fixed cost +target profitContribution marginContribution margin =…