Sanchez Company Makes and Sells Two Models of Dog Houses,the

question 144

Essay

Sanchez Company makes and sells two models of dog houses,the Puppy Palace and the Canine Castle:
$$\begin{array} { l c r } & \text { Puppy Palace } & \text { Carine Castle } \\\text { Sales price per unit } & \$ 50 & \$ 75 \\\text { Variable cost per unit } & 30 & 50 \\\text { Contribution margin per unit } & \$ 20 & \$ 25\end{array}$$ Sanchez has determined that it would break even at an annual sales volume of 5,000 units,of which 75% would be Puppy Palaces.What is the amount of Sanchez's estimated annual fixed costs?

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Definitions:

Aztec Society

A highly structured and complex society that developed in central Mexico in the 14th, 15th, and 16th centuries, noted for its architectural, artistic, and mathematical achievements, as well as its warrior culture.

Iron Weapons

Weapons made from iron, an innovation that significantly impacted military technology and warfare strategies during ancient and medieval times.

Ferdinand Magellan

A Portuguese explorer who organized the Spanish expedition to the East Indies from 1519 to 1522, resulting in the first circumnavigation of the Earth.

Pacific Ocean

The largest and deepest of Earth's oceanic divisions, extending from the Arctic in the north to the Southern Ocean in the south, bounded by Asia and Australia on the west and the Americas on the east.