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(1) Determine the weighted-average contribution margin. Sales mix Contribution margin per return Total per unit Easy 50% Moderate 20% Business 30% Weighted-average contribution margin (2)
(1) Determine the weighted-average contribution margin. | ||||||
Sales mix | Contribution margin per return | Total per unit | ||||
Easy | 50% | |||||
Moderate | 20% | |||||
Business | 30% | |||||
Weighted-average contribution margin | ||||||
(2) Determine the break-even point in units using the weighted-average contribution margin. | ||||||
Numerator: | / | Denominator: | = | Break Even Units | ||
/ | = | Break even units | ||||
(3) Determine the number of units of each product that will be sold at the break-even point. | ||||||
Sales mix | Number of units to break even. | Units sales at the break-even point | ||||
Easy | ||||||
Moderate | ||||||
Business |
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