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Vernon Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super...

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Accounting

Vernon Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super Supreme Sales price $ 91 $ 128 Variable cost per unit (64 ) (93 ) Contribution margin per unit $ 27 $ 35 Vernon expects to incur annual fixed costs of $126,420. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. Required Determine the total number of products (units of Super and Supreme combined) Vernon must sell to break even. How many units each of Super and Supreme must Vernon sell to break even?

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