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2. B&G Pty Ltd sells three models of heaters - the Standard, the Deluxe, and the Pro. Selected information on the rackets is given below:
2. B&G Pty Ltd sells three models of heaters - the Standard, the Deluxe, and the Pro. Selected information on the rackets is given below: Standard Deluxe Pro Sales in units (per annum Unit selling price Variable manufacturing cost per unit Variable selling cost per unit 10 000 $50 $20 $4 5000 $100 $35 $10 7000 $250 S50 S15 All sales are made through the company's own retail outlets. The company has the following fixed costs: Fixed manufacturing cost Fixed selling and administrative costs Total Per annum $253 000 $208 000 $461 000 Required: a) Calculate the unit contribution margin for each product type. b) Determine the weighted-average unit contribution margin. c) Compute the break-even point in units for the company as a whole. d) Compute the break-even point in units for each product. e) Determine the total number of units that must be sold to obtain a target profit of $90,000 for the company
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