Explain and show work Benson Company manufactures two products. The budgeted per

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Explain and show work

Benson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super Supreme $93 Sales price Variable cost per unit Contribution margin per unit $128 83 $ 45 57 $ 36 Benson expects to incur annual fixed costs of $220,590. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme Required a. Determine the total number of products (units of Super and Supreme combined) Benson must sell to break even. b. How many units each of Super and Supreme must Benson sell to break even? (For all requirements, do not round intermediate calculations.) a. Total number of products b. Product Super units units units Product Supreme

Explanation / Answer

a Weighted average contribution margin =(36*70%)+(45*30%)= $38.7 Total number of products = 220590/38.7= 5700 b Product Super 3990 =5700*70% Product Supreme 1710 =5700*30%

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