What is the contribution margin per composite unit

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Reference no: EM13823099

A company makes 2 products, A and B.

Product A sells for $60 per unit and has variable costs per unit of $25.

Product B sells for $100 per unit and has variable costs per unit of $40.

For every three units of product A sold, the company sell two units of product B.

Fixed costs are $585,000.

1. What is the contribution margin per composite (bundled) unit?

2. How many composite units must be sold in order to break even?

3. At the break-even point, how many units of product A are sold?

Reference no: EM13823099

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