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

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?