#!# 15-25B. (Sales mix and the break-even point) Wayne Automotive produces four lines of auto accessories for the major Detroit automobile manufacturers. The lines are known by the code letters A, B, C, and D. The current sales mix for Wayne and the contribution margin ratio (unit contribution margin divided by unit sales price) for these product lines are as follows:

Total sales for next year are forecast to be $150,000. Total fixed costs will be $35,000.

a. Prepare a table showing (1) sales, (2) total variable costs, and (3) the total contribution margin associated with each product line.

b, What is the aggregate contribution margin ratio indicative of this sales mix?

c. At this sales mix, what is the break-even point in dollars?

Transcribed Image Text:

PRODUCT LINE PERCENT OF TOTAL SALES 25%% C D 41% 19% 13'h CONTRIBUTION MARGIN RATIO 40% 228