Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

1 Brad Sherwood Corporation sets two types of computer other for video applications. The company has provided the following Total fixed costs 300125 000 Per-unit

image text in transcribed
image text in transcribed
1 Brad Sherwood Corporation sets two types of computer other for video applications. The company has provided the following Total fixed costs 300125 000 Per-unit data on the two products is presented blow: 9 $ Unit data Selling price Variable costs Contribution margin Sales mix Audio computer Video computer 1.500S 1.750 1,100 1.200 400 SSO 75% 25% > Weighted contribution margin (0.5 marks each) Required: Calculate the following a) Total weighted average contribution margin (1 mark) To b) Break-even point in units for the company as a whole (1 mark) 18 19 20 c) How many of each type of computer will be sold at the 21 breakeven point? (1 mark each) Audio Com NO COM 22 23 d) Will breakeven point stay the same if sales mix changes? Why or why not? (2 marks) yes, break even will change of sales mix changes, this because weighted average contribution margin depends on sales mix%. if sales mix % changes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics Informed Decisions Using Data

Authors: Michael Sullivan III

5th Edition

9780134133539

Students also viewed these Accounting questions