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QUESTION 16 Ruthel Corporon s $195 Rutes 6500 tw types of the sales 40% (Gen and 0% (Gen Pus) cose 91.060 How many units of G
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Answer #1
Fixed Cost allocated to Gen Plus =$991,000*60% =$594,600
Sales price per unit $195
Less:Variable cost per unit $105
Contribution margin per unit $90
Break even point(Fixed cost / Contribution margin per unit) 6600 units
So Option A is answer
The most profitable product is Coffee cakes based on the Contribution margin
Coffee produced =1,500 hours / 0.30 =5,000 units
Contribution margin =5,000*$4 =$20,000
So Option B is answer
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