1. Archer Industries sells three different sets of sportswear. Sleek sells for $30 and has variable costs of $18; Smooth sells for $50 and has variable costs of $30; Potent sells for $80 and has variable costs of $45. The sales mix of the three sets is: Sleek, 50%; Smooth, 30%; and Potent, 20%. Instructions What is the weighted-average unit contribution margin?

2. sony Inc. sells two product lines. The sales mix of the product lines is: Standard, 60%; and Deluxe, 40%. The contribution margin ratio of each line is: Standard, 35%; and Deluxe, 45%. Lazaros fixed costs are $1,950,000.

Instructions

what is the dollar amount of Deluxe sales at the break-even point?

Hunt, Inc. provided the following information concerning two products:

Product 12 Product 43

Contribution margin per unit $20 $18

Machine hours required for one unit 2 hours 1.5 hours

Instructions

Compute the contribution margin per unit of limited resource for each product. Which product should Hunt tell its sales personnel to push to customers?