Question

Both Apple and Google sell electronic devices, and each of these companies has a different product mix.

Answer 1

Answer:

Apple contribution margin

$    300 per unit

Apple Break even point:

$    120 units

Google contribution margin

 $   200

BEP

 $     50

Explanation:

$\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}$

Where:

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

Apple contribution margin

550 - 250 = 300 per unit

Apple Break even point:

36,000 / 300 = 120 units

Google contribution margin

470 - 270 = 200

BEP

10,000 /  200 = 50