Russell Corporation sells three different models of mosquito zapper. Model A12 sells for $50 and has variable

Question:

Russell Corporation sells three different models of mosquito "zapper." Model A12 sells for $50 and has variable costs of $40. Model B22 sells for $100 and has variable costs of $70. Model C124 sells for $400 and has variable costs of $300. The sales mix of the three models is as follows: A12, 60%; B22, 25%; and C124, 15%.

(a) What is the weighted-average unit contribution margin?

(b) If the company's fixed costs are $199,500, how many units of each model must the company sell in order to break even?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...