Answered step by step
Verified Expert Solution
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
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
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started