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Sanchez Company Makes and Sells Two Models of Dog Houses

question 112

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Sanchez Company makes and sells two models of dog houses, the Puppy Palace and the Canine Castle:
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?
 Puppy Palace  Canine Castle  Sales price per unit $50$75 Variable cost per unit 3050 Contribution margin per unit $20$25\begin{array} { | l | r | l | } \hline & { \text { Puppy Palace } } &{ \text { Canine Castle } } \\\hline \text { Sales price per unit } & \$ 50 & \$ 75 \\\hline \text { Variable cost per unit } & 30 & 50 \\\hline \text { Contribution margin per unit } & \$ 20 & \$ 25 \\\hline\end{array}

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any prior learning.

Favorite Song

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Blinking

A rapid closing and opening of the eyelids, which serves as a protective mechanism for the eyes by helping to keep them moist and free from irritants.

Meat Powder

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