Question

Betty DeRose, Inc. produces and sells three products. Information about
these products for 2022, the most recent year, appears below:

                            Product A    Product B    Product C
selling price per unit          $33          $49          $24
variable costs per unit         $14          $37          $11
number of units sold           22,000       18,000       25,000

Betty DeRose, Inc. reported total fixed costs of $195,636 in 2022.

Calculate the number of units of Product B that needed to be sold
in 2022 in order for Betty DeRose, Inc. to earn a net income of
$498,680.

Answer 1

	Product A	Product B	Product C	TOTAL
	(22000/65000)	(18000/65000)	(25000/65000)
Product Mix	33.85%	27.69%	38.46%	100.00%

Working		Product A	Product B	Product C	TOTAL
A	Price	$             33.00	$   49.00	$             24.00
B	Variable Cost per unit	$             14.00	$   37.00	$             11.00
C = A - B	Contribution Margin per unit	$             19.00	$   12.00	$             13.00
D	Product Mix	33.85%	27.69%	38.46%	100.00%
E = C x D	Weighted Average Contribution Margin	$ 6.43	$ 3.32	$ 5.00	$ 14.75

A	Total Fixed Cost	$ 195,636.00
B	Desired Profits before Tax	$ 498,680.00
C = A + B	Total Contribution margin required	$ 694,316.00
D	Weighted Average Contribution Margin	14.75
E = C/D	Total no. of Units required for earning desired profits	47,060
F x 33.85%	Product A	15,928
F x 27.69%	Product B	13,032
F x 38.46%	Product C	18,100

Number of Product B to be sold =13032