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  1. business
  2. accounting
  3. zara builders inc. produces two products, a and b.

Zara Builders Inc. produces two products, A and B. The following information is presented for...

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Accounting

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Zara Builders Inc. produces two products, A and B. The following information is presented for both products: B $36 $24 Selling price per unit Variable cost per unit 28 12 Total fixed costs are $234,000. Required: 12 Calculate the contribution margin for each product marks) b. Calculate break-even point in units of both A and B if the sales mix is 3 units of A for every unit of B (i.e., 75% of sales are from A and 25% of sales are from B). (4 marks) c. Calculate break-even volume in total dollars if the sales mix is 2 units of A for every 3 units of B (i.e., sales mix is 40% for A and 60% for B). (4 marks)

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